Veronica Guerrieri, Guido Lorenzoni, Ludwig Straub, Iván Werning, 06 May 2020

The Covid-19 pandemic and the policies taken to control its spread have many features of an aggregate supply shock, as workers who stay home are prevented from producing goods and services. This column argues that when a supply shock asymmetrically affects different sectors of the economy, it can produce a contraction in demand even larger than the original shock, leading to deflationary pressures. This is due to complementarities across sectors and the fact that workers in different sectors are differentially affected and lack insurance.

Frédéric Docquier, Çağlar Özden, Giovanni Peri, 06 October 2014

Researchers have devoted little attention to the effects of emigration from OECD countries, and the absence of detailed emigration data is the main culprit. Using a new and improved migration database, this column analyses the effect of migration on the wages of less educated native workers. The results suggest that, as far as labour market outcomes of less educated workers are concerned, governments should worry less about new arrivals and more about the potential consequences of their high emigration rates.

Giovanni Peri, Kevin Shih, Chad Sparber, 29 May 2014

Immigrants to the US are drawn from both ends of the education spectrum. This column looks at the effect of highly educated immigrants – in particular, those with degrees in Science, Technology, Engineering, or Mathematics – on total factor productivity growth. The authors find that foreign STEM workers can explain 30% to 60% of US TFP growth between 1990 and 2010.

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