Sebastian Edwards, 30 November 2019

In a few decades, Chile experienced dramatic economic growth and the fastest reduction of inequality in the region. Yet, many Chilean citizens feel that inequality has greatly increased. Such feelings of 'malestar' triggered the violent social unrest of October 2019. This paper explains this seeming paradox by differentiating ‘vertical’ (income) inequality from ‘horizontal’ (social) inequality. It argues that the neoliberalism that created Chile’s economic growth is no longer effective and that Chile may be headed towards adopting a welfare state model.

Andrés Rodríguez-Pose, Michael Storper, 02 October 2019

A dominant view in urban economics suggests that the solution to the housing crisis of major cities is to relax zoning and other planning regulations. This column challenges this position, arguing that there is no clear and uncontroversial evidence that housing regulation is a principal source of differences in home availability or prices across cities and that these issues are more linked to rising inequalities in the geography of employment, wages and skills. Blanket changes in zoning are unlikely to increase affordability for lower-income households in prosperous regions, but would increase gentrification without appreciably decreasing income inequality.

Fabian Eckert, Sharat Ganapati, Conor Walsh, 26 September 2019

In recent years, wages for highly skilled workers have grown rapidly. Using US data between 1980 and 2015, this column studies a group of service industries that are skill-intensive, widely traded, and have recently seen explosive wage growth. It shows that, unlike any other sector, the wage growth in these industries was strongly biased toward the densest local labour markets and the highest-paying firms. These developments alone explain 30% of the increase in inequality between the 50th and 90th percentiles of the wage distribution. 

Kacie Dragan, Ingrid Gould Ellen, Sherry Glied, 19 September 2019

The pace of gentrification in US cities has accelerated, but little evidence exists on its impact on low-income children. This column uses Medicaid claims data to examine how gentrification affects children’s health and wellbeing in New York City. It finds that low-income children born in areas that gentrify are no more likely to move than those born in areas that don't gentrify, and those that do move tend to end up living in areas of lower poverty. Moreover, gentrification does not appear to dramatically alter the health status or health-system utilisation of children by age 9–11, although children growing up in gentrifying areas show somewhat elevated levels of anxiety and depression.

Mark Harrison, Alan Bollard, Walter Scheidel, Cormac Ó Gráda, 06 September 2019

Marking the 80th anniversary of the outbreak of the Second World War, some of the authors involved in VoxEU's series, The Economics of the Second World War: Eighty Years On, talk to Tim Phillips about their research.

Shari Eli, Trevon Logan, Boriana Miloucheva, 20 August 2019

The mortality gap between blacks and whites in the US has been well documented, but there is still considerable debate over why the gap has remained so large and why it has persisted over the last century. This column explores these questions using unique data on black and white Civil War veterans to measure one of the earliest known incidences of physician bias against African Americans. It shows that physician bias had large effects on income and longevity of blacks relative to whites and considers the ways in which doctor attitudes still contribute to the racial mortality gap today. 

Paolo Acciari, Alberto Polo, Gianluca Violante, 13 July 2019

Intergenerational mobility is viewed as a proxy for a fair and fluid society, as it sheds light on the extent to which individuals with different initial conditions are presented with equal opportunities to succeed. This column investigates intergenerational income mobility in Italy and finds income persistence to be quite linear, except at the very top of the income distribution. It also finds a steep difference by region, with provinces in the north being more egalitarian and more upwardly mobile than in the south.

Gianmarco Ottaviano, 03 July 2019

Economic geography strikes back. After a couple of decades of easy talk about the ‘death of distance’ in the age of globalisation, the promise of a world of rising living standards for all is increasingly challenged by the resilience of regional disparities within countries. As long as many people and firms are not geographically mobile – and those who are tend to be the most skilled and productive – easier distant interactions can actually strengthen rather than weaken agglomeration economies. Recent electoral trends in Europe can be understood to a surprisingly large extent from this angle. 

Leandro de la Escosura, 15 June 2019

The concept of human development views wellbeing as being affected by a wide range of factors including health and education. This column examines worldwide long-term wellbeing from 1870-2015 with an augmented historical human development index (AHHDI) that combines new measures of achievements in health, education, material living standards, and political freedom. It shows that world human development has steadily improved over time, although advances have been unevenly distributed across world regions.

Margherita Borella, Mariacristina De Nardi, Fang Yang, Douglas Clement, 17 May 2019

Behind the headline economic growth in the US over the last five decades lie clear patterns of widening wealth inequality. This column shows that white, less-educated Americans born in the 1960s are worse off than the generation born 20 years previously, based on wage changes, increased medical costs, and shorter life expectancy. This disparity could be worth as much as $132,000.

David Bloom, Alyssa Lubet, 29 April 2019

As baby boomers get older, many high-income countries face challenges in the provision of pensions and healthcare. The column argues that the US has particularly acute problems arising from its ageing population, high healthcare costs, and high inequality in maternal mortality and other health indicators. It will take deep social policy and health system reforms to address these inequalities.

Barbara Biasi, 24 April 2019

Rates of intergenerational mobility vary widely across the US. This column investigates the effects of reducing differences in revenues and expenditures across school districts within each state on students’ intergenerational income mobility, using school finance reforms passed in 20 US states between 1986 and 2004. Equalisation has a large effect on mobility, especially for low-income students. The effect acts through a reduction in the gap in inputs and in college attendance between low-income and high-income districts.

Thomas Blanchet, Lucas Chancel, Amory Gethin, 22 April 2019

Despite the growing importance of inequalities in policy debates, it is still difficult to compare inequality levels across European countries and to tell how European growth has been shared across income groups. This column draws on new evidence combining surveys, tax data, and national accounts to document a rise in income inequality in most European countries between 1980 and 2017. It finds that income disparities on the old continent have increased less than in the US and shows that this is essentially due to ‘predistribution’ policies.

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UNIDO, UNU-MERIT and the GPID Network organize an interdisciplinary workshop to explore questions connected to the Future of Industrial Work and the new pathways and policies of structural transformation. More information on the objectives of the workshop are reported in the call.
The keynote speaker at the workshop is Margaret McMillan (Tufts University). The workshop will also feature a high-profile policy panel chaired by Kunal Sen (UNU-WIDER).
Deadline for abstracts: 1 May 2019
Deadline for full draft papers: 1 September 2019
Workshop: 19-20 September 2019
Abstracts should be between 1,500 and 1,800 words, contain key words indicating the focus of research and the methods used, and should be submitted via [email protected]. The abstract should contain information about the topic, how it is investigated and the contribution to knowledge.
A selection of papers will be considered for a special issue in a leading journal of development studies or in an edited volume

Eric Hanushek, Paul Peterson, Laura M. Talpey, Ludger Woessmann, 15 April 2019

For 50 years, anti-poverty government programmes in the US have focused on improving school outcomes for poor children. This column reports new evidence that, contrary to recent thinking that gaps in student achievement by socioeconomic status have increased over the years, the gaps have been essentially flat over the past half-century. New policies and new approaches seem called for if we wish to lessen these gaps.

Tito Boeri, Andrea Ichino, Enrico Moretti, Johanna Posch, 13 April 2019

In many European countries, wages are determined by collective bargaining agreements intended to improve wages and reduce inequality. This column compares the impact of different wage bargaining models in Italy, which has limited geographical wage differences in nominal terms and almost no relationship between local productivity and local nominal wages, and Germany, which has a tighter link between local wages and local productivity. The Italian system is successful at reducing nominal wage inequality, but creates costly geographic imbalances. If Italy were to adopt the German system, aggregate employment and earnings would increase by 11.04% and 7.45%, respectively. 

Elizabeth Caucutt, Nezih Guner, Christopher Rauh, 06 April 2019

In 2006, 67% of white women in the US between the ages of 25 and 54 were married, compared with only 34% of black women. This column examines the link between this and the decline in low-skilled jobs and the era of mass incarceration that have disproportionately affected black communities. It finds that differences in incarceration and employment dynamics between black and white men account for half of the black–white marriage gap.

Shekhar Aiyar, Christian Ebeke, 03 April 2019

There are contrasting theories on the relationship between income inequality and growth, and the empirical evidence is similarly mixed. This column highlights the neglected role of equality of opportunity in mediating this relationship.  Using the World Bank’s new Global Database on Intergenerational Mobility, it shows that in societies where opportunities are unequally distributed, income inequality exerts a greater drag on growth. 

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