The work-from-home wage premium
Studies have found that workers typically value the option to work from home and are willing to accept sizable wage cuts in exchange for it,
Geopolitical risk and supply chain diversification
Geopolitical risks are reshaping global production, yet little is known about how firms reallocate their supply chains in response. Using parent-affiliate matched data on Japanese
The gender wage gap and what firms have to do with it
Early explanations for gender wage gaps focused on human capital or career choices. This column uses data from the US and ten European countries to
How traffic demand management can improve access, equity, and jobs in transit-oriented cities
Cities around the world are grappling with how to expand access to jobs and services while reducing congestion, lowering emissions, and building transport systems that
A silver lining to the European energy crisis: Energy efficiency, productivity, and potential output
The 2022 natural gas price shock triggered the largest rise in fossil fuel prices in Europe since the 1970s. This column examines the impact on
Trade risk and optimal trade policy: Lessons from food security
Geopolitical shocks and trade disruptions have made imports less reliable, especially for essential goods like food. This column outlines a framework where trade costs are
Generative AI in German firms: Diffusion, costs, and expected economic effects
The novelty and speed of diffusion of generative AI means that evidence on its impact on productivity and the future of work is scarce. This
Productivity, firm size, and why distortions hurt developing economies
In many developing countries, productive firms remain too small, while less productive firms are too large. Such misallocation contributes to losses in aggregate productivity. This
EU barriers to scaling up: The case of fragmented product markets
European firms tend to be smaller and less productive than US firms. Qualitative and survey-based evidence suggests that one key reason is the remaining barriers
FDI and growth in the age of global value chains
Existing evidence indicates that foreign direct investment promotes growth only when host economies have the human capital and deep financial markets to absorb spillovers. This
