Data typically show that people become progressively taller as living standards improve. But despite impressive recent rates of economic growth, India remains one of the worst-performing countries in terms of height. Using data from Indian and English health surveys, this column reveals that, conditional on parents’ height, children of Indian ethnicity are on average taller when born and raised in England rather than in India. The results provide evidence against the importance of genetic factors in explaining the disappointing growth performance of Indian children.
Beginning in 1944, the Bretton Woods system played a major role in shaping the global economy in the post-war period. This column describes how although it was successful in bringing about exemplary and stable economic performance in the 1950s and 1960s, familiar confidence and liquidity problems, as well as inflationary pressure and central bankers’ responses to it, ensured that Bretton Woods was short-lived. Nonetheless, legacies of the system, like the dollar standard, remain with us and will likely be with us for some time to come.
The exact causes of (and lessons from) the Great Compression – the decline in US income inequality in the mid-20th century – remain unclear. This column uses census data and changes in law to examine the effect of education across the complete distribution of income. Policies that increased attendance for young children in the late 19th and early 20th centuries appear to have had long-term implications for earnings and inequality, with returns to schooling highest among those at the lower end of the income distribution.
The vast majority of online content is financed through ad revenue. This column looks at how the growing use of ad blockers is affecting incentives for online content creation. Using data on site traffic and the proportion of users with ad blockers engaged, it argues that ad blocking intially increases traffic, but as ad revenues decline and sites are less inclined to invest in content, the pattern reverses and visitor numbers decline.
Many commentators have portrayed Britain’s referendum decision to leave the EU as being motivated by a popular rejection of globalisation. This column argues that in seeking to understand the economic basis of the Brexit vote, we should concentrate not on globalisation but on the long-term impact of de-industrialisation, which has left a legacy of a much more polarised service sector labour market, with large numbers of people condemned to poorly paid and insecure jobs.
Other Recent Columns:
- The Basel process: Good intentions and unintended consequences
- Eligibility easing and the lender of last resort
- Shadow borrowing through the UK’s defined benefit pension system
- Ricardo and comparative advantage at 200
- Impact of immigration barriers on native workers
- Brexit: A new industrial strategy and rules on state aid
- Inter-ethnic marriages in Italy
- A new bargaining perspective on sovereign debt restructuring
- The Global Crisis and regional employment in Europe
- European and Asian incomes in 1914: New take on the Great Divergence
- Health spending: It’s not just about ageing
- Understanding inflation in India
- Tax reforms and top incomes
- Ethnic segregation and spatial income inequality
- A new approach to identifying causal mechanisms
- Subsidiarity: Still the key to Europe’s institutional problems
- Government quality and returns to infrastructure investment
- Progress on benchmarking macroprudential policy strategies
- Austerity in the aftermath of the Great Recession
- Trade: The benefits of foreign banks