Paolo Epifani, Gino Gancia, 07 October 2008

Wage inequality between skilled and unskilled workers has increased in recent years, particularly in countries that opened their markets to international trade. This column explains how trade may push up the demand for skilled workers worldwide by creating larger international markets for differentiated goods.

Edward Leamer, 26 September 2008

At the Global Economic Symposium in Schleswig-Holstein in September 2008, Edward Leamer of the University of California, Los Angeles spoke at a session on inequality and globalisation. Afterwards, he talked to Romesh Vaitilingam about his concept of ‘neurofacturing’ (creating value through knowledge work rather than physical labour), its rising significance in the world of the personal computer and the internet, the impact on inequality and the implications for our education systems.

Betsey Stevenson, Justin Wolfers, 04 August 2008

Surveys that have attempted to measure the level of happiness in US citizens by means of a subjective response have unveiled decreases in happiness inequality. The authors of CEPR DP6929 have used these responses to analyse the level and dispersion of happiness within and between demographic groups over the period of 1972-2006.

Joseph Altonji, Prashant Bharadwaj, Fabian Lange, 06 May 2008

The earnings premium for skilled labour has increased dramatically in recent decades. Yet, as this column shows, Americans are not acquiring significantly greater skills in response to this change. The resulting gap will increase US income inequality in the coming decades.

Andreas Georgiadis, Alan Manning, 05 January 2008

The standard framework for thinking about inequality and redistribution – the median voter approach – predicts that rising inequality should produce more redistribution. The facts reject this prediction for the UK and suggest that beliefs may be an important missing factor.

Janet Currie, Firouz Gahvari, 17 December 2007

Many countries provide large in-kind transfers although standard economic theory says cash transfers would be more efficient. Here is some new evidence evaluating the many justifications for in-kind transfers; it seems paternalism is the most likely explanation.

Branko Milanovic, Peter Lindert, Jeffrey Williamson, 05 December 2007

Is inequality largely the result of the Industrial Revolution? Or were ancient incomes as unequal as they are today in poor pre-industrial societies? Looking at pre-industrial inequality from the Roman Empire in 14 AD to British India in 1947 generates new insights into the inequality and economic development connection over the very long run.

Pedro Carneiro, Costas Meghir, Matthias Parey, 22 November 2007

New research shows that raising the level of mothers’ education pays large intergenerational returns with kids benefiting, for example, from extra parental investment in their education. Policies that promote women’s education should take account of this in their design and evaluation.

Alberto Alesina, Francesco Giavazzi, 05 October 2007

Anti-reformists in Europe claim to be protecting Europe’s weak and poor. Nothing could be further from the truth. Labour-market flexibility, deregulation of the service industry, pension reforms and greater competition in university funding might harm the interest of well-connected, privileged citizens but it would open up opportunities for Europe’s youth and disadvantaged groups. A real left-wing agenda would embrace reform.

Indraneel Dasgupta, Ravi Kanbur, 02 July 2007

Rich individuals are encouraged to make large contributions to the provision of public goods in return for tax exemptions, a policy that appears to endorse the claim that philanthropy can be considered a substitute for the direct income redistribution brought about through taxation. The authors of CEPR DP6362 address the question of how voluntary provision affects welfare inequality and find that (1) philanthropy can in fact increase inequality among the non-rich, but (2) income redistribution can be more effective in reducing inequality when accompanied by philanthropy. Automatic exemption from expropriation for rich philanthropists is therefore not the right policy.

Pages

Events

CEPR Policy Research