Beata Javorcik, Ben Kett, Katherine Stapleton, Leyla O'Kane, 20 November 2020

The Brexit referendum created the threat of a trade policy reversal on an unprecedented scale, with the potential ‘unravelling’ of decades’ worth of deep integration between the UK and the world's most integrated trading bloc. This column examines how this affected UK labour demand. It finds that UK regions exposed to the threat of future barriers on professional services exports experienced a substantial decline in the posting of online job adverts after the Brexit vote, relative to less exposed regions. A back-of-the-envelope calculation indicates that this resulted in approximately 1.5 million fewer job adverts posted after the vote than might have occurred otherwise. 

Yukiko Asai, 05 September 2019

One factor exacerbating gender gaps in employment is the cost of affording maternity and parental leave to women as primary caregivers. This column analyses the relationship between the costs of providing parental leave and labour demand for childbearing-age women. As evidenced by a series of reforms in Japan in the last two decades, reducing the burden of parental leave costs from firms to social insurance systems increases both labour demand and starting wages for such workers.

Christoph Boehm, Aaron Flaaen, Nitya Pandalai-Nayar, 15 August 2019

What has caused the rapid decline in US manufacturing employment in recent decades? This column uses novel data to investigate the role of US multinationals and finds that they were a key driver behind the job losses. Insights from a theoretical framework imply that a reduction in the costs of foreign sourcing led firms to increase offshoring, and to shed labour.

Jacques Bughin, 23 December 2018

Advances in artificial intelligence have led to fears of job losses. This column uses a global survey covering more than 3,000 executives across 14 sectors and ten countries to examine the impact of AI on the demand side of the labour market. Ultimately, the effect on employment will depend on whether companies choose to use current forms of AI for innovation or pure automation, and whether they foresee a return from it.

Dong Lou, 19 July 2018

Superstar firms like Facebook and Tesla make a substantial difference to overall industry productivity. In his research, Dong Lou asks whether they also impact students’ choices of degree majors. Using data on students' college major choices and the stock returns and media coverage of relevant companies in the US, he shows that firm performance had a positive effect on encouraging students to choose relevant majors. But the relevant labour demand in those industries has not risen accordingly, which has depressed wages.

Stéphane Bonhomme, Laura Hospido, 04 September 2017

The link between the rise in unemployment and the housing market in the US during the Great Recession is well documented. This column shows that in the case of Spain, the rise and fall in demand for construction workers following developments within the housing market had a big impact earnings inequality as well as employment. While there has been no apparent trend in the recent evolution of earnings inequality in Spain, countercyclical fluctuations have been substantial, with the construction sector playing a key role in this.

Laurie Reijnders, Marcel Timmer, Xianjia Ye, 25 October 2016

Offshoring and biases in technical change can have observationally equivalent effects on domestic labour demand, which precludes a quantification of their relative impacts. This column shows how biased technical change can be identified by studying global value chains that include all stages of production, both at home and abroad. It finds that technical change has been strongly biased against less-skilled workers, and in favour of high-skilled labour and capital.


CEPR Policy Research