Early school leaving and criminal behaviour are important social problems. This column argues that delinquency and arrests both lead to early school leaving. The findings show that the overall reduction in education due to delinquency is at least as large as the reduction due to arrest. Crime prevention efforts thus need to extend beyond youth who come into contact with the justice system.
Since the onset of the Global Crisis, a number of central bank reforms have been implemented. This column suggests that since the Crisis, a silent restoration towards lower central bank independence might have been in place. The trend is more pronounced in non-OECD countries and, in particular, for the level of operational independence. The findings suggest that governments might be willing to trade off central bank independence to cope with concerns regarding financial stability, high debt and unemployment levels.
Economic models suggest that competition will prevent those subjected to discrimination from being affected adversely. This column uses an unusual case study of sex workers in Singapore to reveal that having many actors on both sides of the market does not, in fact, eliminate discrimination. Policy intervention remains the best tool to end price discrimination.
‘Learning by exporting’ refers to productivity gains experienced by firms after they commence exporting. Such gains are argued to be due to access to new knowledge and resources. This column explores some of the preconditions for learning-by-exporting effects, using data on the overseas activities and affiliations of Japanese firms. Firms that enter markets in which they don’t have affiliates or subsidiaries are found to enjoy the most learning-by-exporting productivity gains. These findings have implications for the timing of new market entry.
The export-less depreciation of the yen has opened a debate on the power of exchange rates to boost exports. This column presents new evidence on how the exchange rate elasticity of exports has changed over time and across countries, and how global value chains have affected it. The upshot is that greater integration in global value chains makes exports substantially less responsive to exchange rate depreciations.
Other Recent Columns:
- Africa at a fork in the road: Taking off or disappointment once again?
- Three questions (and answers) about finance and firms
- Back from the brink: Policy reform and debt relief in Greece
- What the general public knows about monetary policy
- Consumer spending and property taxes
- Estimating the financing gap of small and medium-sized enterprises
- A short-run view of what computers do
- Media, markets and institutional change: Evidence from the Protestant Reformation
- Pricing genius
- Wealth and income distribution: New theories needed for a new era
- Immigrants’ impact on labour markets: New evidence
- Strength of the dollar and emerging markets’ growth
- Low inflation in the Eurozone
- Consumption and transfers: Evidence from Italian earthquakes
- Still vulnerable: The Eurozone’s small and medium-sized banks
- Iceland, Greece and political hectoring
- A pragmatic approach to external debt: The write-down of Germany’s debts in 1953
- Greek debt sustainability: The devil is in the tails
- Return to gold: The sterling-dollar rate in the 1920s
- Sovereign debt repayments: Evidence on seniority