Seth G. Benzell, Victor Yifan Ye, 12 October 2021

Despite clear economic benefits of new digital technologies, slow median wage growth has led many to worry that these new technologies are failing to deliver for the average worker. This column develops a new model of global automation and technological change to study the long-term consequences of these trends. It finds that automation can boost output and growth, but these benefits are not equally distributed across or within regions. Nevertheless, in developed countries smart fiscal policy, such as universal basic income, can make new technologies a win-win for all age and skill groups. 

Orsetta Causa, Mikkel Hermansen, 23 March 2018

Growing wealth inequality has become a key concern for economists, and tackling it requires a deep understanding of how tax and transfer systems affect the income distribution. Using OECD data, this column argues that taxes and transfers are less effective at reducing inequality today than they were in the mid-1990s. This drop in effectiveness has largely been driven by declining cash transfers, with a smaller, more heterogeneous role for personal income taxes.

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