Researchers have devoted little attention to the effects of emigration from OECD countries, and the absence of detailed emigration data is the main culprit. Using a new and improved migration database, this column analyses the effect of migration on the wages of less educated native workers. The results suggest that, as far as labour market outcomes of less educated workers are concerned, governments should worry less about new arrivals and more about the potential consequences of their high emigration rates.
Frédéric Docquier, Çağlar Özden, Giovanni Peri, Monday, October 6, 2014
Laurence Ball, Tuesday, July 1, 2014
Whereas textbook macroeconomic theory suggests that output should return to potential after a recession, there is mounting evidence that deep recessions have highly persistent effects on output. This column reports estimates of the long-term damage caused by the Great Recession. In most countries in the sample, the loss of potential output – 8.4% on average – has been almost as large as the loss of actual output. In the countries hit hardest by the recession, the growth rate of potential output is much lower today than it was before 2008.
Chiara Criscuolo, Peter N. Gal, Carlo Menon, Monday, May 26, 2014
Young firms are known to play a central role in job creation. This column presents the results of a new OECD project on the dynamics of employment (DynEmp) based on an innovative methodology using firm-level data. It confirms that young firms play a central role in creating jobs, and in enhancing growth and innovation. Public policies can help by enabling firms to experiment, and by fostering the reallocation of resources towards the most productive firms. Structural reforms to product, labour, and capital markets, as well as bankruptcy laws that do not overly penalise failure, are particularly relevant.
Leandro Prados de la Escosura, Monday, April 7, 2014
Measures of economic freedom provide useful cross-country comparisons, but lack the time dimension to track intertemporal progress. This column presents a new measure and extends it back in time to tell a history of economic freedom over the course of the twentieth century.
Patrick A Messerlin, Sébastien Miroudot, Friday, September 7, 2012
Public spending on large-scale projects is often a way of sneaking in protectionism through the back door and there are many cases of outright corruption. With the EU and US pushing hard for more open public procurement elsewhere in the world, this column asks just how open these markets are, particularly in the EU, which claims to have the most open market in the world.
Ashoka Mody, Damiano Sandri, Franziska Ohnsorge, Wednesday, February 22, 2012
Uncertainty rose sharply during the Great Recession, as did saving rates. This column shows that these two developments were related. Using a panel of OECD countries, it estimates that at least two-fifths of the increase in households’ saving rates between 2007 and 2009 was due to increased uncertainty about labour-income prospects. It adds that restoring higher levels of consumption and aggregate demand will require employment-friendly social insurance and reduced policy-induced uncertainty.
Pierre Cahuc, Stéphane Carcillo, Tuesday, February 1, 2011
One method for combating unemployment during the global crisis has been the use of short-time work schemes that allow employers to temporarily reduce hours worked while compensating workers for the induced loss of income. In the first of two columns on labour markets, the authors present new evidence establishing that these schemes do indeed reduce unemployment. But they are no panacea and are not without their own problems.
Oriana Bandiera, Valentino Larcinese, Imran Rasul, Monday, January 11, 2010
The effect of increasing class size in tertiary education is not well understood. This column estimates the effects of class size on students’ exam performance by comparing the same student’s performance to her own performance in courses with small and large class sizes. Going from the average class of 56 to a class size of 89 would decrease the mark by 9% of the observed variation in marks within a given student. The effect is almost four times larger for students in the top 10%.
Helmut Reisen, Thursday, June 5, 2008
Sovereign wealth funds have raised fears in developed countries, but development economics suggests a number of legitimate motives for such investment vehicles. This column explains why there is no need for suspicion – only level-headed policy responses.
Denis Drechsler, Johannes P. Jütting, Friday, March 7, 2008
Discrimination against women significantly hampers the economic development of many poor countries. This column introduces two new OECD Development Centre efforts to assess and reduce gender discrimination, including a new portal www.wikigender.org.
Julia Lane, Harry J. Holzer , Fredrik Andersson, Monday, October 15, 2007
Research has long shown that workers who take temp jobs subsequently do better in the labour market. New research from the US suggests that the positive effects seem mostly to occur because those working for temp agencies have a higher chance of subsequently working for higher-wage firms.
Hiau Looi Kee, Alessandro Nicita, Marcelo Olarreaga, Wednesday, July 18, 2007
Trade openness matters, so the measurement of trade restrictiveness matters. Commonly used measures, however, are deeply flawed. New research, using theory-based measures, has generated two new global databases on the restrictiveness of trade policy at the most disaggregated level.