The most popular regulation against child labour is a ban against it. This column presents evidence from such a ban in India. Not only did the ban not reduce child labour, but it even increased it. The effects are concentrated among the poorest families. Therefore, policy reforms other than bans could be more effective in reducing child labour, and in improving the lives of children.
Scrapping subsidies were a popular policy to protect car sales in the beginning of the crisis. This column presents new research showing that the subsidies had a strong effect on stabilising sales, but only a small environmental impact. There may thus be more productive investments to stabilise the economy during times of crisis.
The profound impact of the ICT revolution on the job market have been widely studied, but the effects of different types of technology can be heterogeneous and even contradictory. This column presents evidence that technologies providing access to stored data tend to empower front line workers, while communicative technologies put more power in the hands of managers.
While quality upgrading is always viewed positively in both policy and academic circles, little is known about the macro implications for countries of specialising in high-end varieties. This column presents evidence that high-end variety exporters are less sensitive to trade costs. This implies a greater geographic diversification of exports, which compensates for their higher sensitivity to demand shocks and smoothes aggregate volatility. It also increases export growth when business opportunities arise in distant markets.
Fixed and sunk costs are widely accepted as important determinants of export behaviour. This column argues that such costs may be shared by agglomerated collections of firms, and presents evidence of agglomeration’s effects on exporting in China. Agglomeration is more effective in low-tech sectors and land-locked areas. Surprisingly, the effect of agglomeration is different for indigenous and foreign firms.
Other Recent Articles:
- Labour mobility in Europe and the US
- Consumption and credit constraints during financial crises
- Productivity in Italy: The great unlearning
- Oil prices and food prices
- The EU’s new Single Bank Resolution Mechanism
- Ukraine’s trade policy
- Government and spatial inequality
- The euro and price convergence
- The new market-risk regulations
- A 25% bank equity requirement?
- Debt crises forewarned: Stochastics matter
- Biggest-city agglomeration: Historical trends
- Monetary policy will never be the same
- Carbon pricing and the role of natural gas in EU climate policy
- Inequality in China
- Foreign-currency loans and systemic risk in Europe
- On the impossible trinity
- Dark side of housing-price appreciation
- Currency wars and the euro
- Design of preferential trade agreements
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013