STICERD Research by Xavier Jaravel
Gains to U.S. consumers from Chinese imports could help compensate job losses
According to research by Xavier Jaravel from STICERD and Erick Sager from the Federal Reserve Board, the gains from falling U.S. consumer prices due to increased trade with China could be used to compensate those in the U.S. effected by job losses. Their study finds the price effects of trade with China were substantial and largely beneficial to U.S. consumers, and could help mitigate the effects of the "China shock", where the impact of rising Chinese exports to the U.S. has negative consequences for U.S. employment levels, particularly in manufacturing.
Xavier Jaravel said: "In practice, compensating the exact individuals who lost their jobs because of trade may be challenging as it requires policy makers to find and implement the proper policies to redistribute the gains from the winners to the losers. But our results indicate that there is much room to organise such transfers, because the consumer gains are large."
Find out more about the research on the LSE News website.
Launch of the Multidimensional Inequality Framework
Today we are delighted to inform you that we have launched the Multidimensional Inequality Framework (MIF). The MIF and dedicated websites are the results of a collaboration between academics in the Centre for Analysis of Social Exclusion (CASE) at the London School of Economics and the School of Oriental and African Studies (SOAS) (Abigail McKnight as the academic lead), and practitioners in Oxfam (led by Alex Prats).
The initial project was funded through grant from the Atlantic Fellows for Social and Economic Equity (AFSEE) programme at the LSE's International Inequalities Institute and further funding for the development of the CASE website was provided by the LSE's Knowledge Exchange and Impact Fund.
For too long inequality has been conceptualised and measured within single dimensions. This has limited our understanding of inequality and restricted our ability to tackle it. The Multidimensional Inequality Framework provides a systematic, theoretically grounded approach to measuring and analysing inequality. Amartya Sen's capability approach, informs the theoretical foundation of the MIF, and leads us to look beyond simple measures of economic outcomes or subjective assessments of well-being to assess the quality of people's lives. Instead, we assess inequalities in the capability of individuals to live a life they have reason to value and one that they would choose for themselves. The MIF is structured around seven key life domains, within which we provide a selection of inequality indicators and inequality measures.
The dedicated website contains a toolkit with advice on how to apply the MIF, lots of resources to help you identify inequality drivers, candidate policies and how to take action.
What economists really do? A brief guide to Economics by Oriana Bandiera and Fraser Clark
Professor Oriana Bandiera and Fraser Clark have produced a video on what economists really do. Oriana talks to other economists at LSE: Swati Dhingra (who studies the economic effects of Brexit), Dr Daniel Reck (who studies behaviour economics and policy), Rachael Meager (who studies econometrics) and Ricardo Reis (who studies macroeconomics). Their fields of study relate to the core of economics, which is the study of how people and firms make choices on nearly everything - what to consume, what to buy, what to produce, how much to work, which job to do - to even lifestyle choices such as whom to marry or whether to have children. What brings economists together is the method they use to analyse these choices. The tools of economics help us to understand behaviour in many settings, and understanding behaviour allows us to tell whether policies will have the desired effect.
First Atkinson MRes/PhD Scholarship awarded to Agnes Varga
In memory of our much-missed colleague, Tony Atkinson, the School has established a new PhD scholarship, funded jointly by STICERD and the Economics Department.
Agnes Varga is the first recipient of the Atkinson MRes/ PhD Scholarship and she joined LSE in 2018 after completing a BSc in Political Economy at King's College London. Her research is planned to centre around the relationship between inequality and economic efficiency, particularly focusing on the role of redistributive policies, ie, how lower inequality induced by such policies might differ from ex-ante equality in its implications for economic performance.
She intends to explore this through the framework of heterogenous agent models in the presence of incomplete markets. With a particular interest in the inextricable role of social and political elements in economic questions, as both evidenced and fostered by her background in political economy, she wishes to incorporate the crucial aspect of how inequality affects the degree of redistribution pursued politically, and how this alters the overall relationship examined in a political vacuum.
IZA Research Programme: Jobs, Gender and Poverty
Professor Oriana Bandiera, Director of STICERD, will direct a new research initiative on gender, jobs and poverty. The programme (G2LM|LIC), sponsored by DFID and managed by IZA, has a budget of over £10million over 5 years. It will fund innovative research proposals on the link between jobs and poverty, gender specific barriers and the growth implications of improving the allocation of talent in low income settings.
The programme marks the extension of the successful IZA/DFID cooperation, which started as the Growth and Labour Markets in Low-Income Countries (GLM|LIC) programme in 2011. The programme marks the extension of the successful IZA/DFID cooperation, which started as the Growth and Labour Markets in Low-Income Countries (GLM|LIC) programme in 2011.
On Wednesday 19 June 2019 the initiative will be launched with an inaugural workshop held at the LSE, with presentations by several leading scholars and a panel discussion. Find out more from the IZA Conference website.
The Yrjo Jahnsson award
The award is given to the best European economist under 45. This year, Oriana Bandiera of LSE and director of STICERD and Imran Rasul of UCL share the prize. They talk to Tim Phillips about their work, and #whateconomistsreallydo.
Professor Tim Besley joins the panel of the IFS Deaton Review
Professor Tim Besley, Professor of Economics and Political Science & W Arthur Lewis Professor of Development Economics, has joined the panel of the newly launched IFS Deaton Reviw of Inequalities.
The IFS Deaton Review: Inequalities in the 21st Century is an ambitious five-year project, initiated by IFS and funded by the Nuffield Foundation.
With the Nobel Laureate Professor Sir Angus Deaton in the chair, the panel overseeing the project includes world-leading experts in sociology, demography, epidemiology, political science, philosophy and economics.
To give a sense of the breadth and ambition of the project, the themes to be covered here will include: which inequalities matter and why they matter; people's attitudes towards inequality; their experiences of inequality; the political economy of inequality; the history of inequality; trends in economic inequalities; intergenerational inequalities; health inequalities; geographical inequalities; gender; race and ethnicity; immigration; early child development; education systems; families; social mobility; trade and globalisation; productivity, growth and innovation; labour markets; tax policy; and welfare policy.
Oriana Bandiera joint winner with Imran Rasul of the 2019 Yrjö Jahnsson Award in Economics
Congratulations to Oriana Bandiera, director of STICERD and Sir Anthony Atkinson Professor of Economics at LSE, and to Imran Rasul, Professor of Economics at UCL, who have been jointly awareded the 2019 Yrjo Jahnsson Prize in Economics.
Oriana Bandiera (pictured left) and Imran Rasul are applied microeconomists. Their work on the role of social relationships in economics, advanced through pioneering field experiments in the workplace and social networks, has provided salient contributions to economics, especially to the fields of personnel economics and development.
An important contribution of their work is that their experiments have become a role model for randomized control trials for incentive treatments and they have deeply influenced the applied microeconomics field. Their transformative work has inspired a generation of applied economists.
About the award
In 1993 the Finnish Yrjo Jahnsson Foundation established a biennial award, called the Yrjo Jahnsson Award in Economics, for a European economist no older than 45 years old who has made a contribution in theoretical and applied research that is significant to economics in Europe. The European Economic Association (EEA) cooperates with the Yrjo Jahnsson Foundation in the selection of the award winners. In 2019, the EEA and the Yrjo Jahnsson Foundation decided to extend the the age limit in certain circumstances, such as for maternity leave (12 months per child), long-term illness, or national mandatory military service.
The EEA and the Yrjo Jahnsson Foundation approved the Selection Committee's decision. 2019 Yrjo Jahnsson Award Selection Committee - Orazio Attanasio, Armin Falk, Eliana La Ferrara, Kjetil Storesletten and Hannu Vartiainen.
Oriana and Imran will be presented with their Award during the annual EEA Congress to be held in Manchester, United Kingdom (August 2019)
ESRC New Investigator award granted to
Dr Xavier Jaravel, Assistant Professor of Economics and Associate of the Public Economics Programme at STICERD, has been awarded an ESRC New Investigator award to undertake research on the distributional effects of prices.
The project has three objectives: (1) to advance our understanding of the impact of price changes over time and across countries on inequality and standards of living; (2) to advance our understanding of the price effects of specific policies (namely: redistribution policies; trade policies; and monetary policy); (3) to enable researchers, policymakers and the general public to access new data on prices so that they are able to conduct their own analyses on prices, policies, inequality, and standards of living.
2019 Human Development and Capability Association Conference
London, 9-11 September, 2019
Hosted by University College London, in partnership with the School of Oriental and African Studies (SOAS), Birkbeck, the University of East London (UEL) and the London International Development Centre (LIDC)
The theme for the HDCA 2019 conference in London (9-11 September 2019) is Connecting Capabilities. We have chosen this theme because we think connection is an important capability that needs further consideration.
March 2019 is the date currently scheduled for Brexit. In some ways this is a national political difficulty and time of uncertainty for the UK. But in other ways Brexit reflects themes that resonate internationally - not least the impact of globalisation and the emergence of greater xenophobia and more authoritarian forms of democracy in many parts of the world. The theme of connecting capabilities gives us an opportunity to think against this grain, using ideas and networks on human development and putting the capability approach to work in new ways.
Confirmed keynote speakers and plenary panels
Vandana Shiva (Sen Lecture)
Leif Wenar (Nussbaum Lecture)
Panel with activists and practitioners reflecting on using the capability approach including Gautam Bhan, Indian Institute for Human Settlements, and Johannes Krassnitzer, UNDP
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