In most economies, parents would like to see their children have a higher standard of living, and with it a better life, than they had themselves. When children are asked, they too tend to consider their parents a natural benchmark to compare their economic progress against (Goldthorpe, 1987; Hoschschild, 2016, Chetty at al., 2017). A simple measure that captures this notion of progress is the percentage of children who managed to surpass their parents, which we will refer to as absolute mobility. Chetty et al. (2017) find that the United States did exceptionally well by this measure for the generations born in the 1940s and 50s, when over 90 percent of children managed to do better than their parents in terms of income. Absolute mobility in the United States has since faded to around 50 percent for the current generation. How has absolute mobility fared elsewhere in the world? In which economies do children have the best chances to improve upon their parents? Are the highest rates of absolute mobility observed in economies that are starting from a low base?
The World Region
When private sector firms provide skills for adults, most do so through on-the-job training (OJT). However, under what conditions can private sector firms provide more OJT? Investigating this question is critical to help governments leverage scarce domestic resources for public investments, and to support, vulnerable groups, while enabling the private sector to take on the bulk of adult skills training provision.
Trade unexpectedly rebounded in 2017, after a period of slow growth and despite recent uncertainty about trade policy. Growth in the volume of trade in goods and services jumped to 4.3 percent in 2017—the fastest rate in 6 years (Figure 1). The recovery was widespread, with the largest contributions to growth coming from East Asia and the Euro area. Data just released for the first quarter of 2018 suggests that the faster growth persists: merchandise trade volumes grew by 4.4 percent in the first quarter of 2018 relative to the first quarter of 2017. What explains these developments?
“I like work, it fascinates me,” said Jerome K Jerome. “I can sit and look at it for hours.” We concur with the author of “Three Men in a Boat’, a novel which so fascinated Late Victorian England that, within a year of publication, the number of vessels on the River Thames had doubled.
We too love work and we anticipate that our devotion to it will result in Jeromesque adulation. The early signs are good; our report is still in draft stage but it has already been downloaded more than 20,000 times. You can discover for yourself why it’s proving so popular by clicking here.
As economists our fascination with work has nothing to do with Jerome’s mirthful quip (but just think how many enduring jobs were created as a result of his fictitious river journey) and everything to do with untangling a riddle that is embedded in the zeitgeist. Google ‘the future of work’ and, in 0.56 seconds, 115,000,000 results appear.
We are living through transformative, perhaps epochal times, when the only thing we can be sure of is persisting uncertainty. What will our children do for a living? Never mind the kids, what about us -will we make it to retirement? And how will we pay for it? Will the robots rise against us?
Non-energy prices advanced 1.8 percent while agricultural prices increased 1.7 percent on higher prices for wheat (up 11 percent), rice and cocoa (4 percent rises each), soybean meal and tea (4 percent gains each). Fertilizer prices decreased 0.7 percent, led by a 5 percent drop in urea.
Metals prices gained 2.3 percent, led by gains in aluminum (up 9 percent) and nickel (4 percent rise).
The Annual Bank Conference on Development Economics (ABCDE) is fast approaching. The theme of this year’s conference is "Political Incentives and Development Outcomes" and papers selected for this year’s ABCDE are now posted online.
In a sector where a proliferation of research seemingly has contributed at least as much to confusion as to progress, the 2018 World Development Report (WDR), Learning to Realize Education’s Promise sheds new light, and points towards fresh, hopeful pathways forward. It is a landmark contribution.
“Education for all” was the seductive promise of the millennium. Yet all too many children are attending school without acquiring even basic literacy or numeracy. Why?
Small differences in the time and cost to trade can determine whether or not a country participates in global value chains. In this respect, the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), which came into force on February 22, 2017, is a landmark achievement given its comprehensive coverage of the issues around cutting red tape and promoting efficiency and transparency, as well as the fact that it is the first multilateral agreement since the establishment of the WTO in 1995. Coincidentally, the Trading Across Borders (TAB) indicator of Doing Business measures the efficiency of national regulations in trade facilitation and keeps track of relevant reforms, allowing us to analyze how the provisions of the TFA are related to the reform efforts of governments around the world.
In the wake of the Global Financial Crisis (GFC), many wondered whether the strong pre-crisis trend toward greater internationalization in banking would be reversed and, more immediately, whether local state-owned banks had to assume a larger role in restoring banking stability and ensuring the delivery of credit. We revisit those conjectures in the light of new data on bank ownership and research on the post-Crisis period (Cull, Martinez Peria, and Verrier, 2018).