“Digitized Labor: the Impact of the Internet on Employment” by Lorenzo Pupillo, Eli Noam and Len Waverman
This book provides new evidence for the Impact of the Internet on jobs. All of the empirical articles indicate that the Internet has indeed created many new jobs, but that a large number of jobs may have been destroyed or downgraded, at least in the short run. Furthermore, routinization, job market polarisation and new labour market inequalities have emerged. Thus, while the diffusion of the Internet is generating opportunities it also comes with ambiguous trends that by themselves will not generate a more resilient and inclusive labour market. These changes cannot be dealt with as business-as-usual by governments and the private sector. Failing to mitigate short-term job losses risks pushbacks and restrictive policy responses that threaten to slow down the ICT Revolution.
For three years running, CEPS has organised the Integrated Programme in European Policy Studies (IPEPS), as a complement to master’s degree programmes in universities across Europe. Thanks to financial support from the Erasmus+ programme, IPEPS has increased the understanding among European students of real-life policy issues facing EU leaders, built valuable networks of students from many different backgrounds and improved their understanding of the internal and external workings of the EU. Based on a partnership with nine universities across the EU, IPEPS has also taken up the challenge of using innovative learning methods to foster teamwork, dialogue and constructive exchange of ideas.
How to educate future generations and equip them with the knowledge and skills required to perform the jobs of tomorrow? What are the implications of the digitalisation of the labour market for industrial business models? What can the EU do to help the new generation of students to become better integrated into the labour market? Please join us at the IPEPS Final Conference on July 4th to explore these and other important questions.
Wage growth has been sluggish in both the US and EU over the past six years. This initially looked like a ripple effect of the Great Recession and part of a cyclical adjustment of labor markets on both sides of the Atlantic. Now, however, lackluster wage growth continues in spite of very tight labor markets in many countries. This suggests that we are seeing a slow rate of trend wage growth in both the EU and the US. In this presentation, we briefly review the potential cyclical adjustments that might still affect wage growth in some countries. We then provide a framework to think about trend wage growth in terms of (i) inflation, (ii) relative price movements, (iii) productivity growth, and (iv) changes in labor shares (real unit labor costs). We use this framework to review the literature on each of these drivers of wage growth and discuss common factors that might subdue wage growth on both sides of the Atlantic.
The Hague, Netherlands
Discussion: The entrepreneurial capacity of knowledge driven institutions for improving the competitiveness of regions
Introduction by Ludovit Garzik
Many economies invest heavily into their education and research ecosystem. In order to keep these investments the regional innovation system has to transform the knowledge into economic models to design products and services that have in the end macro-economic impacts and create the money that can be furthermore invested into new knowledge. Following the stream of money pouring in the knowledge ecosystem we should be able to find the best spots where to bridge the gaps to innovation: Universities, research institutions, as well as industry. Human capital working in these institutions seems not to be motivated to implement their knowledge. One of the key findings is that the majority stream of human capital getting available each year flows into career models that are risk averse and do not call for transforming the knowledge into innovation. The impetus for that development is to be found in the cultural framework of the respective ecosystem. The hypothesis is that the mindset of the management of the respective knowledge driven institutions plays a major role. Entrepreneurial spirit is inherited and transferred top-down and is therefore a major driver of the capacity of those institutions for improving competitiveness of regions.
Ludovit Garzik is Managing Director of the Austrian Council for Research and Technology Development (RFTE). Prior to this position, he worked for the Managing Board of the Austrian Research Promotion Agency and served as Head of Galileo Unit at the Austrian Space Agency. He holds a PhD from the Vienna University of Economics and Business Administration, an MBA from the Danube University Krems, and a Master of Science in Geodesy from the Technical University of Vienna. Ludovit Garzik is Guest Professor in Shanghai University. In 2015, he founded the company InnovationOrbit.com, which provides Executive Education programs for Innovation Culture in Africa, Asia, Europe and the USA.
Norwegian parents of preschool children make their care choices from a completely different choice set compared to what their predecessor did. Now, there is essentially only one type of nonparental care, center-based care, and at the parental side fathers take a more pivotal role in the early childhood care. In the present paper we develop and estimate a joint labor supply and child care choice model that accounts for these new characteristics, assuming that this model points to current and future modeling directions for several other economies too. Estimations suggest that the average wage elasticity for mothers is 0.25–0.30.
The Hague, Netherlands
A joint NIESR/RICS/CaCHE/CFM conference
This free one-day conference will bring together leading academics, policymakers and practitioners to discuss what is “broken” about the UK housing market and how we might go about fixing it. The event will take place at the Institution of Civil Engineers, Westminster, SW1P 3AA.
London, United Kingdom
The speaker will present a paper which proposes a new channel to explain the medium- to long-term effects of banking crises on the real economy. It embeds a banking sector prone to runs in a stylized growth model to show that episodes of bank distress affect not only the volume, but also the composition of firm investment, by disproportionally decreasing investments in innovation. This hypothesis is confirmed empirically employing industry-level data on R&D spending around 13 recent banking crises episodes.
Using difference-in-difference identification strategies, the author shows that industries that depend more on external finance, in more bank-based economies, invest disproportionally less in R&D following systemic banking crises. These industries also have a lower share of R&D spending in total investment, suggesting a shift in the composition of investment that is specific to recessions following banking crises and not other business cycle recessions.
Oana Peia is an assistant professor in the School of Economics at University College Dublin. She has a PhD in Economics from ESSEC Business School and THEMA University of Cergy-Pontoise. Her research is at the intersection of finance and macroeconomics with an emphasis on the role that financial intermediaries play in the real economy with research interests that include financial crises, economic growth, global games and time series econometrics. Her work has won the 2016 Olga Radzyner Award from the National Bank of Austria and her PhD won the best thesis prize from the Banque de France Foundation for Monetary, Financial and Banking Economic Research.
LISER together with many partners in Luxembourg co-organizes the following lecture.
Human capital has played a key role in the evolution of inequality over the recent decades. This lecture will first present some facts about inequality in general, then discuss endogenous human capital formation and its role on the labor and marriage markets. I will argue that an ‘inequality spiral’ is generated as educated people tend to marry their own and invest more into their children, increasing assortative matching among their offspring and resulting in more inequality for the next generation.
Prof. Pierre-André Chiappori (Columbia University)
Kalina Manova will present a paper which quantifies the origins of firm size heterogeneity when firms are interconnected in a production network. The study was co-authored by Professor Manova, Andrew Bernard, Emmanuel Dhyne, Glenn Magerman and Andreas Moxnes. They document new stylized facts about the universe of buyer-supplier relationships among all firms in Belgium during 2002-2014. These facts motivate a model in which firms buy inputs from upstream suppliers and sell to downstream buyers and final demand. Firms can be large not only because they have high production capability (i.e. productivity or product quality), but also because they interact with more, better and larger buyers and suppliers, and because they are better matched to their buyers and suppliers. The model delivers an exact decomposition of firm size into upstream and downstream margins with firm, buyer/supplier and match components. The paper establishes three empirical results. First, downstream factors explain the vast majority of firm size heterogeneity, while upstream factors are only one fourth as important. Second, nearly all the variation on the downstream side is driven by network sales to other firms rather than final demand. By contrast, most of the variation on the upstream side reflects own production capability rather than network purchases from input suppliers. Third, most of the variance in the network components of firm size is determined by the number of buyers and suppliers and the allocation of activity towards well-matched partners of high quality, rather than by average partner capability.