Labour markets

Timo Boppart, Per Krusell, 21 May 2016

The rise of automation and, more generally, IT-driven structural change in the labour market have made policymakers and researchers worry about ‘disappearing jobs’ and a dire future for employment. This column examines data from several countries to get a long-term view of labour supply. To the extent that productivity improvements continue, hours worked will indeed likely fall. But this will not necessarily be a bad thing and jobs will not necessarily disappear.

Santiago Caicedo, Robert E. Lucas, Jr., Esteban Rossi-Hansberg , 14 May 2016

A large part of people’s wages rewards the knowledge embedded in them that they use in a production endeavour. Knowledgeable individuals specialise in hard, complicated tasks, while less knowledgeable ones specialise in simpler, more common tasks. This column uses a dynamic model of knowledge accumulation over time and career paths to find an underlying cause for wage inequality in the US over the last few decades. A good explanation for the wage inequality is the discrepancy between the rate of technological change and the rate at which the distribution of knowledge catches up.

Richard Blundell, Rowena Crawford, Eric French, Gemma Tetlow, 11 May 2016

Housing forms a large share of household wealth in many nations. Using comparable data for the US and England, this column argues that the nature of housing as an asset – its utility value, illiquidity, and mix of risk and returns – is an important factor in explaining the trajectory of wealth in retirement. 

Michael Kosfeld, Susanne Neckermann, Xiaolan Yang, 08 May 2016

Employees care about more than just money. Understanding these non-monetary motivations can help organisations incentivise performance. This column presents evidence from a field experiment that explored the motivational effects of ‘meaningful’ work. Recognition and meaning are found to have substitutive motivational effects, while monetary incentives and meaning have additive effects. 

James Banks, Carl Emmerson, Gemma Tetlow, 07 May 2016

Many countries are increasing the age at which people can start claiming state-funded pensions. One objection often raised is that such policies are unfair because some will be too unhealthy to remain in paid work. This column compares employment rates in England of older people today to those of earlier generations, and also to those of younger people today. These comparisons suggest that a significant minority of older people appear to be unable to work on the grounds of health alone. 

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