Manufacturing is a locus of innovation, yet standard industry data show manufacturing productivity stagnating in the US. This column argues that standard measurements understate true productivity growth in the sector, especially in industries where it is difficult to track changes in quality growth. Comparing producer and consumer price indexes, the authors show that ‘missing’ quality […]
The two most prominent arguments President Trump has advanced for his trade war – both during the early months of his second term, and for decades prior – are that protectionism will reduce the trade deficit and increase manufacturing employment. This column, taken from a CEPR book on the economic consequences of the second Trump […]
Despite an abundance of low-skill labour, India has never experienced the kind of takeoff in low-skill, labour-intensive manufacturing seen in other countries at comparable income levels. This column argues that a key reason for this underperformance is the exit barriers faced by Indian manufacturing firms which entry of new firms, prolong the survival of low-productive […]
The negative correlation between inequality and unionisation rates in the US has been extensively documented, but while the other direction of causality – the impact of inequality on the labour movement – has also been theorised, it has not been empirically tested. This column uses three distinct research settings to show how rising occupational wage […]
The growth of the private equity in recent years has raised concerns about its consequences. This column matches 2.5 million workers who were employed by 3,600 firms in the US that underwent leveraged buyouts with workers at firms that were not acquired to explore the effects of private equity on labour market outcomes. The authors […]
Russia’s 2022 invasion of Ukraine sparked Europe’s largest refugee crisis since WWII. Unlike past waves of migrants, Ukrainian refugees gained immediate labour market access through the EU’s Temporary Protection Directive, offering a unique policy test. This column finds that the resulting labour force increase had no economically meaningful impact on employment, unemployment, or inactivity rates […]
The Covid-19 pandemic sparked a large and lasting shift to remote work. This column draws on detailed administrative data from a major call centre in Türkiye to show that a permanent shift to fully remote work can expand recruitment and raise productivity without compromising service quality. The transition increased the share of women, including married […]
Advanced economies are still experiencing labour shortages in the aftermath of the COVID-19 pandemic. This column examines the high labour shortages across OECD countries, focusing on wage and non-wage job quality. Real wages have generally increased, but with differences between countries and industries. Beyond pay, job insecurity, poor working conditions, and exposure to health risks […]
Economic sanctions have become an increasingly common instrument of foreign policy, promoted as a non-violent alternative to military intervention. However, their effects on labour markets remain underexplored. This column examines the case of Iran following the unprecedented international sanctions imposed in 2012 to investigate how sudden and extreme shocks to market access affect the allocation […]
