Yann Algan, Sergei Guriev, Elias Papaioannou, Evgenia Passari, 12 December 2017

A wave of populism has been gaining ground in the West since 2012. This column uses regional data for 26 European countries to explore how the impact of the Great Recession on labour markets has affected populist voting, political attitudes, and trust. The results indicate a strong link between unemployment and voting for non-mainstream (especially populist) parties. Unemployment is also correlated with increasing distrust of national and European parliaments.

Nicholas Crafts, Alex Klein, 12 December 2017

The geography of industrial production changed dramatically during the 20th century both across and within countries. This column provides new estimates of changes in the spatial concentration of US manufacturing from 1880 to 1997. The average level across all industries fell by more than half over the period. Although creative destruction has had a strong spatial component, almost all industries can be described as significantly spatially concentrated at all times. 

Stefano Micossi, 11 December 2017

Negotiations on the banking union in the Eurozone have been stuck ever since the Italian government assembled a blocking minority opposing further discussions on proposals to reduce legacy risks in banks’ balance sheets. This column argues that completing the banking union should once again be given priority, and that the European deposit insurance scheme could move forward immediately by providing in its early phase that the ESM would offer a liquidity line to national deposit guaranty schemes that had exhausted their funds, with no sharing of losses.

Joshua Aizenman, Yothin Jinjarak, Nam Ngo, Ilan Noy, 11 December 2017

The Global Crisis and its aftermath has focused attention on increasing inequality, and specifically on declining real incomes of the working poor. Comparing the US to Germany, this column argues that pushing more students to degree-granting colleges may no longer be the most efficient way to deal with the challenges caused by the decline in manufacturing employment affecting, in particular, lower-income households. Well-resourced, well-targeted vocational training can prove to be a better long-term investment in skill acquisition to help ameliorate the difficulties faced by workers whose prospects look to be quite bleak.

Cheti Nicoletti, Kjell G. Salvanes, Emma Tominey, 10 December 2017

Developed countries have seen substantial increases in the number of women who return to work after having a child. This is due to a host of well-researched factors, including tax credit incentives and increased availability of child care. This column analyses another factor determining mothers’ labour supply – the peer effects of women in their family. It finds that for each hour worked by a family member, women work up 30 minutes a week purely due to the peer effect. This finding is important for determining the direct and indirect effectiveness of policies encouraging women to work after having children.

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