The inflow of low-skilled migrants may encourage natives to upgrade their skills, taking advantage of immigrant-native complementarity. This column uses exogenous dispersion of refugees in Denmark to investigate this issue. The findings confirm that for low-skilled native workers, the presence of refugee-country immigrants spurred mobility and increased specialisation into complex jobs.
Business investment in advanced economies contracted sharply during the global crisis and has recovered little since. This column argues that the main factor holding back investment is overall economomic weakness. In some countries other contributing factors include financial constraints and policy uncertainty. Fixing the investment dearth will require fixing the general weakness in economic activity.
An oft expressed view is that the Eurozone is a straitjacket on periphery members and income convergence has slowed, halted or reversed. This column argues that EZ convergence never stopped. What changed was the type of convergence. Today’s convergence is neither nominal nor real, it is structural. Structural convergence presents a basis for renewed real convergence. However, for this to happen, the right institutions and policies need to be in place at both European and national levels.
Whereas some argue there is no need to revise the US constitution, others believe that its inherent flaws are in the core of the US’ decreasing power. This column reviews four alleged flaws of the US constitution. There is a striking similarity in method and substance between current proposals for constitutional reform in the US and the post-crash constitutional reform process in Iceland presently held captive by parliament..
Despite a significant progress over the past decades, European integration still needs improvement in some areas. This column presents a long-term narrative of European integration by using a recently published European index of regional institutional integration. The index maps developments in European integration from 1958 to early 2015 on the basis of a new monthly dataset. The evidence shows that successful integration could be achieved with reforms that are inclusive, widely explained, understood, and accepted.
Other Recent Columns:
- New CEPR Report: A New Start for the Eurozone: Dealing with Debt
- Exports, offshoring and pay: New French evidence
- Economic consequences of gender identity
- Lessons from the 1982 Mexican Debt Crisis for Greece
- A historical look at deflation
- Securities trading and credit supply
- QE, ‘European style’: Be bold but parsimonious
- Demographic structure and the macroeconomy
- Catalyst? TTIP’s impact on the Rest
- Price discrimination by big manufacturers
- Trilemmas in capital flows, and domestic and international order
- Banks’ home bias and public debt sustainability
- Unsecured firm debt and the business cycle
- Evaluating systemic risk proxies empirically
- Capital control measures: A new dataset
- Eurozone interbank lending market during the Global and EZ crises
- Precautionary strategies and household saving
- Boosting female jobs: Nordic lessons for Japan and Korea
- Mismeasuring China’s military spending
- Constructive abstention: Reforming European Council voting