Nezih Guner, Remzi Kaygusuz, Gustavo Ventura, 10 June 2017

Childcare subsidy provision in the US remains substantially lower than in many other developed economies. This column compares the potential effects of expanding three existing subsidy programmes in the US. It also argues, however, that amassing majority support for the expansion of any of the programmes would be difficult given the relatively few number of households the transfers benefit. 

Don Fullerton, Nirupama Rao, 03 May 2017

In the 2012 US presidential election, Mitt Romney famously asserted that 47% of the population were long-term dependents of the government – ‘takers’, not ‘givers’ to the system. This column examines this claim using long-spanning household-level data. Even though many households find themselves not paying tax or receiving public benefits in at least some years, only a small fraction consistently pay no tax or consistently receive public transfers.

Christopher Boone, Arindrajit Dube, Lucas Goodman, Ethan Kaplan, 08 January 2017

The Unemployment Insurance programme in the US was significantly expanded during between 2008 and 2014. This column examines the effect of unemployment insurance duration on aggregate employment during the Great Recession using state-level expansions and contractions in insurance generosity. It finds a positive but not statistically significant employment impact of expanding the insurance. This suggests that the substantial insurance value of the extensions during the Great Recession was not offset in any meaningful way by any costs from weaker job growth.  

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. 

Jim Tomlinson, 05 July 2015

In Britain today, a majority of those in poverty live in working, rather than non-working, households. This challenges the long-held notion that paid work offers a route out of poverty. This column argues that structural changes in the labour market have brought about profound changes in the social security system. A failure to acknowledge these underlying changes means that dialogues about the political direction of the British economy can be problematic and potentially misleading.

Christian Dustmann, Tommaso Frattini, 13 November 2013

The immigration debate has focused on immigrants’ net fiscal impact – whether they receive more in welfare payments and other benefits than they pay back in taxes. This column summarises research showing that – contrary to popular belief – immigrants who arrived in the UK since 2000 have contributed far more in taxes than they have received in benefits. Compared with natives of the same age, gender, and education level, recent immigrants are 21% less likely to receive benefits. 

Ricardo Fernholz, Robert Fernholz, 27 February 2012

What does the distribution of wealth look like in an economy in which all households have identical skills and patience, but there is no redistribution? This column argues that without some redistributive mechanism – either explicit in the form of government tax or fiscal policies, or implicit in the form of limited intergenerational transfers – the wealth in the economy tends to concentrate at the top.

John Micklewright, Gyula Nagy, 30 April 2008

Most studies of unemployment benefits examine benefit levels or lengths of payment, but how benefit schemes are administered is also important. This column reports the results of a randomised control trial conducted in Hungary, which show that closer monitoring of some benefit recipients shortened their unemployment spell.

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