Lena Edlund, Cecilia Machado, 27 June 2020

The urban renewal that transformed many US inner cities may have hit its first major speed bump with the outbreak of Covid-19. The ‘space versus commute’ trade-off has been thrown into doubt and confusion by work-from-home orders. This column draws on socioeconomic history, arguing that a mass exodus of skilled professionals to the suburbs could have major implications for inner city areas. Although this could spell the return to the homicidal days of the 1980s, the authors argue that this may not be the case – the reason being: cell phones and how they have impacted illicit drug retailing.

Sylvain Leduc, Zheng Liu, 14 June 2020

The COVID-19 pandemic has raised concerns about the future of work. The pandemic may become recurrent and necessitate repeated adoptions of social distancing measures, creating substantial uncertainty about worker productivity. This column presents a theoretical framework suggesting that such job uncertainty reduces aggregate demand, and dampens business investment in general. However, automation may provide one way for businesses to cope with the uncertainty about worker productivity. It appears that pandemic-induced job uncertainty could stimulate automation investment, despite declines in aggregate demand.

Liudmila Alekseeva, José Azar, Mireia Gine, Sampsa Samila, Bledi Taska, 03 May 2020

Artificial intelligence will transform job tasks and occupations. This column uses data from US online job postings during 2010–2019 to show how absolute and relative demand for AI-related skills has grown across all industry sectors and occupation groups. Jobs requiring AI skills command, on average, an 11% wage premium compared to similar jobs that do not require AI knowledge. However, AI is at least as much a managerial challenge as it is a technological challenge. Real productivity gains will come only when there are managers who can use AI to create and capture value.

Nicola Pierri, Yannick Timmer, 18 April 2020

Technology adoption in lending can enhance financial stability through the production of more resilient loans. Motivated by the recent surge of FinTech lending, this column analyses the implications of lenders' information technology adoption for financial stability. Banks that adopted IT more intensely before the Global Crisis were significantly more resilient when the shock hit. These banks had significantly fewer non-performing loans, and issued more loans during the crisis itself. Loan-level analysis indicates that high IT adoption banks issued mortgages with better performances and did not offload low-quality loans.

Susan Ariel Aaronson, 05 February 2020

Individuals, citizens and firms have become increasingly dependent on data-driven services such as artificial intelligence and apps, and the same is true of defence and national security officials. This column argues that the US failure to adequately govern how firms use and monetise data affects national security in many ways. It also examines specific examples of the misuse of data and assesses the responses by the US and the EU.

Enghin Atalay, Phai Phongthiengtham, Sebastian Sotelo, Daniel Tannenbaum, 23 January 2020

Since the late 20th century, middle-wage occupations have shrunk as a share of total employment, while occupations requiring social and analytic tasks have grown. However, little is known about the degree to which individual occupations or job titles have changed over time and the extent to which these changes have been driven by new technologies. Analysing approximately 8.7 million job ads published in newspapers during 1940–2000, this column finds that non-routine analytic and interactive tasks in jobs increased, while manual tasks declined. The majority of changes have occurred within rather than between occupations. New technologies are linked to increased intensity of non-routine analytic job tasks.

Yong Suk Lee, Benjamin Cedric Larsen, Michael Webb, Mariano-Florentino Cuéllar, 14 December 2019

As artificial intelligence becomes more widespread and its performance improves, it will likely have significant long-term consequences for jobs, inequality, organisations, and competition. Regulation may be used to address its risks and possibilities, but little is known about how AI-related regulation might affect firm behaviour. This column examines the impact of actual and potential AI regulations on business managers through a randomised online survey experiment. It finds that exposure to information about regulation decreases managers’ reported intent to adopt AI technologies in their firm’s business processes.

Antonin Bergeaud, Gilbert Cette, Rémy Lecat, 05 December 2019

In most advanced economies, both real long-term interest rates and productivity growth have decreased since the early 1990s. The column demonstrates how a circular relationship links these two indicators. Until there is a technology shock, the relationship will converge to an equilibrium in which growth and interest rates are both low.

Henrique Basso, Juan F Jimeno, 29 November 2019

Advanced economies will face large demographic and radical technological change in the next decades. This column shows how demographics and endogenous technological changes, which encompass both innovation and automation, can interact to limit the future prospects for growth and alter the factor income distribution. Due to a trade-off between innovation and automation, lower fertility and population ageing are likely to generate more automation, but also lead to a reduction in GDP per capita growth and the labour income share.

Caroline Freund, Alen Mulabdic, Michele Ruta, 28 October 2019

The conventional wisdom is that 3D printing will shorten supply chains and reduce world trade. This column examines the trade effects of the shift to 3D printing in the production of hearing aids. It shows that adopting the new technology in production increased trade by roughly 60% as production costs came down. An analysis of 35 other products that are increasingly produced using 3D printing also finds positive effects but suggests that product characteristics such as bulkiness can affect the relationship between 3D printing and trade. 

Jakob Molinder, Tobias Karlsson, Kerstin Enflo, 23 October 2019

History has shown that new technology can disrupt societies, and current developments in automation have raised anxious speculation on what might happen if stable middle-class jobs are taken over by machines. This column analyses the impact of technological change on labour markets and social protests, taking the case of the adoption of electricity in early 20th century Sweden. It finds that electrification did increase the incidence of local strikes, but that disputes were associated with workers demanding higher wages and better working conditions rather than attempting to block innovation.

Sotiris Blanas, Gino Gancia, Tim Lee, 10 October 2019

Since the early 1980s, technology has reduced the demand for low and medium-skill workers, the young, and women, especially in manufacturing industries. The column investigates which technologies have had the largest effect, and on which types of worker. It finds that robots and software raised the demand for high-skill workers, older workers, and men, especially in service industries. 

Prasanna Tambe, Xuan Ye, Peter Cappelli, 22 August 2019

When deciding whether to switch employers, technology workers care not only about wages, but also about other factors, such as technology, perks and the quality of co-workers. Using job board data from 2007, this column shows that high-tech workers also ‘pay’ for the opportunity to acquire training in a new technology. Tech workers require more money to leave their current employers when they are working with more interesting technologies. For older and more established technologies, this premium disappears. The effects are stronger for younger workers. 

Johannes Eugster, Giang Ho, Florence Jaumotte, Roberto Piazza, 12 June 2019

Technology diffusion to emerging markets helps share growth potential across countries and lift global living standards. Using a global patent citation dataset, this column estimates the magnitude and impact of international knowledge and technology diffusion, as well as the role that globalisation has played. In emerging markets, knowledge flows have increased innovation and productivity. Competition from emerging markets benefits global innovation.

Łukasz Rachel, 24 May 2019

How we spend our time is changing rapidly. This column argues that an important driver is leisure-enhancing innovation, aimed at capturing our time, attention, and data. Leisure-enhancing technologies can help account for both the rise in leisure hours and the decline in productivity observed across the industrialised world. Their nature carries important implications for the long-run viability of the platforms’ business models, for measurement of economic activity, and for welfare. 

Manzoor Dar, Alain De Janvry, Kyle Emerick, Erin Kelley, Elisabeth Sadoulet, 19 May 2019

Networks are important for transmitting knowledge among farmers, but it is not always easy or appropriate to identify the best farmers which whom to seed a new technology. The column shows that side-by-side demonstration plots for a new variety of rice are successful at inducing learning. This method makes it less important to identify the farmers best positioned to spread information and has the potential to target individuals who are not connected to influential farmers.

Sadao Nagaoka, 15 May 2019

Standard essential patents are patents that are needed in order to comply with a particular standard. Technologies protected by such patents are granted on the condition that rights holders commit to licensing the patents on fair, reasonable, and non-discriminatory terms. This column surveys three key issues that arise under these licensing agreements: hold-up, reverse hold-up, and ex-ante negotiation. The discussion highlights how patent award procedures affect the incentives for firms to invest in R&D. 

Janine Aron, John Muellbauer, 07 May 2019

Mobile money has transformed the landscape of financial inclusion in developing and emerging market countries, leapfrogging the provision of formal banking services. This column explains how mobile money potentially helps ameliorate several areas of market failure in developing economies, including saving, insurance, and the empowerment of women. It illustrates these effects using examples from a burgeoning empirical literature and concludes that the system-wide effects of mobile money may be even greater than current studies suggest.

Mónica Correa-López, Beatriz de Blas, 23 April 2019

Since the end of WWII, advanced economies have experienced long-lasting swings in economic activity. This column takes a look at the historical data and finds that, over the medium term, output and investment fluctuations among European countries have been even more volatile and persistent than in the US. It also reveals that, by diffusing embodied technology through trade inintermediates, large US firms appear to drive Europe's output over the medium term. 

David Autor, 05 April 2019

Do trade and technology harm jobs? David Autor of MIT argues that we shouldn't mix the two as their effects are very different. Autor was giving the Economic Journal keynote lecture at the RES conference 2014.



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