Education is part of the enabling infrastructure required for jobs, social development, and future economic growth. Unfortunately, low- and middle-income countries face an urgent skills crisis with nearly 70% of children unable to read a simple text by age 10. In response, governments, households, and donors spend more than $5.8 trillion annually on financing education […]
Economic growth in Europe continues to lag behind that of the US, largely due to smaller productivity gains. This column uses a general equilibrium model to show that a more integrated capital market in Europe could strengthen investment by reducing the cost of capital (price effect) and encouraging the entry of investors more inclined to […]
Working hours are a fundamental determinant of economic growth and wellbeing, but we still lack a comprehensive picture of how they vary globally and historically. This column presents a new database covering 160 countries, documenting global patterns in hours worked. Hours per adult average 25 per week, with a strong bell shape by age. Women […]
Inequality is a major concern for many economies, prompting the question of whether some regimes are more effective at reducing inequality than others. This column uses measures of welfare including health status and living space to show that, despite Soviet communism’s aim of radical egalitarianism, it failed to eliminate inequality as effectively as promised. While […]
With working-age populations projected to decline rapidly, all European countries face an unprecedented demographic challenge. Inflows of regular foreign workers are thus key to support employment and growth. This column argues that Italy, where the demographic decline is particularly sharp, has a lot to learn from its neighbours to make its migration policies more effective […]
Despite years of regional integration efforts, African countries trade more with Europe and Asia than with each other. This column estimates the gap between the current and potential trade efficiency of 45 African exporting countries and their 43 trading partners over the period 1996 to 2020. The findings highlight the existence of untapped trade potential […]
The current US administration’s willingness to weaponise trade makes clear that transatlantic economic relations have become entirely transactional. This column, taken from a CEPR book on the economic consequences of the second Trump administration, argues that Europe must respond to US tariffs, which target weakness, with economic strength: faster productivity growth, cheaper energy, a genuine […]
If economic activity is considered the primary driver of climate change through emissions of carbon dioxide, then supporting economic growth and fighting emissions would appear to be at odds. However, the process of economic development may itself foster complementarity between GDP growth and emissions reductions. Such complementary in the relationship between economic development and emissions […]
Education is a foundation for good jobs and the surest way out of poverty. We know a good education equips learners with important foundational skills—literacy, numeracy, and socio-emotional competencies—which are essential for work and life. These skills help today’s children become tomorrow’s productive workers and enable workers to reskill or upskill later in life. Investing […]
China’s growth model has continued to rely on expanding industrial capacity and exporting to the world, rather than on domestic consumption. This has lead to a significant increase in China’s global share of manufactured exports and has raised concerns about overcapacity (Figure 1; Xu, 2025). The imbalance arises because China’s expanding production capacity is outpacing […]
