Productivity and Innovation

James Bessen, 22 September 2016

A popular notion is that computer automation leads to major job losses. However, this ignores the dynamic economic responses that involve both changing demand and inter-occupation substitution. Using US data, this column explores the effect of automation on employment growth for detailed occupational categories. Computer-using occupations have had greater job growth to date, while those using few computers suffer greater computer-related losses. The real challenge posed by automation is developing a workforce with the skills to use new technologies.

Achyuta Adhvaryu, Namrata Kala, Anant Nyshadham, 27 August 2016

Energy-efficient technologies are an increasingly relevant policy priority, given growing consensus on the need to tackle climate change. This column examines the productivity benefits of adopting one such technology – LED lighting – for manufacturing firms in India. It finds that improved productivity resulting from LED lighting’s lower heat emissions makes adopting such technology far less costly than previous anticipated, particularly for labour-intensive firms in hot climates. 

Charles Angelucci, Julia Cagé, 26 August 2016

Advertisers are deserting newspapers. Using the impact of television advertising on print media in 1968, this column argues that a reduction in advertising revenues will reduce the quality of newspapers. Ultimately, this may result in a less well-informed public.

Sari Pekkala Kerr, William Kerr, 10 August 2016

Increased hostility to immigration has been a key driver of the rise of right-wing populist movements across the world. At the same time, local governments – notably in the US – have designed work programmes to attract immigrant entrepreneurs to their areas. This column explores the types of businesses founded by immigrants and their growth patterns, and examines how these outcomes relate to immigrants’ age at arrival to the US. Immigrant entrepreneurs experience greater volatility – they fail more frequently, but those that persist experience greater employment growth than their native counterparts. 

Gianni De Fraja, Giovanni Facchini , John Gathergood, 03 August 2016

The positive relationship between wages and firm performance is well established in the literature, but much less is known about the relationship in the university context. This column addresses this gap by matching professors' wages with departmental performance measures from the UK’s Research Excellence Framework. Across the full range of academic disciplines, departments that pay their professors more do appear to perform better. This is driven primarily by the relationship between salary and publications output, with no evidence of a positive relationship between salary and research impact.

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