The generosity of unemployment insurance is often cited as a reason for long spells of joblessness. But this view neglects other important, and potentially positive, economic aspects of such programmes. Using Austrian data, this column presents evidence that unemployment insurance has a positive effect on the quality of jobs that recipients find. This can in turn have a positive effect on future tax revenues, and has implications for the debate on optimal insurance generosity.
Arash Nekoei, Andrea Weber, Friday, July 10, 2015
Jim Tomlinson, Sunday, July 5, 2015
In Britain today, a majority of those in poverty live in working, rather than non-working, households. This challenges the long-held notion that paid work offers a route out of poverty. This column argues that structural changes in the labour market have brought about profound changes in the social security system. A failure to acknowledge these underlying changes means that dialogues about the political direction of the British economy can be problematic and potentially misleading.
Martin Ruhs, Wednesday, November 12, 2014
Many low-income countries and development organisations are calling for greater liberalisation of labour immigration policies in high-income countries. At the same time, human rights organisations and migrant rights’ advocates demand more equal rights for migrant workers. This Vox Talk discusses the tensions between human rights and citizenship rights and argues that you cannot always have both.
Edward Glaeser, Joshua Gottlieb, Oren Ziv, Wednesday, October 15, 2014
Governments are now measuring happiness, or subjective wellbeing, and some have begun trying to maximise it. This column discusses recent research showing that happiness is not the same thing as utility. The choices people make suggest that they have desires and objectives other than happiness. It is therefore possible to make people worse off while increasing their reported subjective wellbeing.
Michele Battisti, Gabriel Felbermayr, Giovanni Peri, Panu Poutvaara, Friday, August 8, 2014
Immigration continues to be a hotly debated topic in most OECD countries. Economic models emphasising the benefits of immigration for natives have typically neglected unemployment and redistribution – precisely the things voters are most concerned about. This column analyses the effects of immigration in a world with labour market rigidities and income redistribution. In two-thirds of the 20 countries analysed, both high-skilled and low-skilled natives would benefit from a small increase in immigration from current levels. The average welfare gains from immigration are 1.25% and 1.00% for high- and low-skilled natives, respectively.
Marc J. Melitz, Stephen Redding, Monday, March 10, 2014
Recent research has sought to quantify the magnitude of the welfare gains from trade. One of the main findings from this literature is that the gains from trade are relatively modest. This column suggests a channel that the standard approach typically abstracts from. It argues that trade induces changes in domestic productivity through a more efficient organisation of production within the supply chain.
Rand Ghayad, William Dickens, Saturday, January 5, 2013
US unemployment seems stuck at an unusually high level of 8%, prompting some to suggest a widespread skills mismatch. This column argues that a skills mismatch is not supported by the evidence. Rather, out of the possible explanations, it seems that any shift in the ratio between unemployment and vacancies is driven by either lower search efforts by the long-term unemployed or by a reduction in their employability.
Fabrice Defever, Alejandro Riaño, Friday, January 4, 2013
The West perennially complains about China subsidising industry geared towards its domestic market. But what will happen when China enacts its latest Five Year Plan’s emphasis on domestic growth? This column argues that ending ‘pure-exporter subsidies’ – subsidies that boost Chinese exports while simultaneously protecting the least efficient, domestically oriented firms – will benefit Chinese consumers, but will cost the rest of the world.
Bruno S Frey, Jana Gallus, Sunday, October 2, 2011
Is religion a ‘crutch for the weak’? This column looks at data on religion and life satisfaction from across the globe and argues that it might just be insurance for the unhappy.
Jesse Cunha, Giacomo De Giorgi, Seema Jayachandran, Monday, September 26, 2011
Should governments pay entitlements in cash or in kind to help reduce poverty? The authors of CEPR DP8581 find that cash transfers increase prices, especially in remote areas where the poorest consumers often live. In-kind transfers lower local prices, helping consumers at the expense of producers with a benefit equal to 11% of value of the transfer.
Tito Boeri, Tuesday, June 23, 2009
Public opinion is turning against migration during the recession, as generous European welfare states make migrants a potential fiscal burden. This column warns against the excessively exclusionary solutions to which voters are turning and suggests decoupling migration and the welfare state.
Fritz Foley, Tuesday, August 5, 2008
Crime rises when US welfare recipients run short of cash at the end of the month. This column discusses research that links the timing of financially-motivated crime and the timing of welfare payments. Cities that make monthly welfare payments see a clear monthly crime cycle, whereas cities that spread out the payments do not.
Karen Kopecky , Jeremy Greenwood, Monday, March 3, 2008
Since 1900, consumers have enjoyed a dramatic explosion in the number and quality of goods available. This column discusses a simple method for quantifying welfare gains from the introduction of new goods into the economy and their subsequent quality improvements using the personal computer as an example.