VoxTalks Economics

The annual meeting of the World Economic Forum, in Davos, attended by thousands of business and policy VIPs – is one of those events that pops up on the news every year, as we see photos of multinational CEOs shaking hands with world leaders and taking part in panel discussions on the future of the planet. But how valuable is it to the business people who pay hundreds of thousands of Swiss Francs to attend? Does Davos create business value, or might it be a high-profile way for them to ski and party – in the words of a new discussion paper published by CEPR, is it any more than “a boondoggle”? Andreas Fuchs of University of Goettingen is one of the researchers who asked this question. He reveals to Tim Phillips the size of the impact on stock prices and credit ratings. Photo: WEF/swiss-image.ch/Michael Buholzer

The belief that women are in some way inferior to men has been around for centuries. And throughout that time, women have suffered the consequences. Economists have lately been trying to understand more about the origins of gender biased norms, to help create better policies to challenge them. Their work can build on insights from sociology, anthropology and gender studies, but also raises important questions about the roles of men and women in society. So what should policy attempt to change?  Siwan Anderson of Vancouver School of Economics and CEPR talks to Tim Phillips about what we know on these topics – and the most promising directions for future research.

On 4 August, Paul Atkins, the chair of the US Securities and Exchange Commission, launched “Project Crypto”. The SEC wants to make the US “the crypto capital of the world”. Crypto investors make a lot of noise, but who are they, and do they behave differently to other retail investors? A new CEPR discussion paper called “Do you even crypto, bro?” summarises what a representative sample of US citizens think about crypto investments and highlights the gap in attitudes to risk and investing between crypto holders and the rest of the population. Michael Weber of Purdue University is one of the authors, and he tells Tim Phillips about the beliefs, the politics and the attitude to investment gains that have typified the crypto market so far.

How do criminals choose the weapons they carry, the number of accomplices, the types of business they target? Economists have long argued that decisions to commit economic crimes are strategic, based on a calculation of risk and reward.  The Italian justice system changes the punishment for a crime depending on how it is committed, and so a new analysis of thieves and their crimes, based on data from Milan, tests whether this is really the case. Giovanni Mastrobuoni of the University of Turin, Collegio Carlo Alberto and CEPR is one of the authors of this research. He talks to Tim Phillips about the economics of crime, the problems of collecting data about illegal acts, and Turin’s most famous gold heist. 

Stéphane Carcillo, an OECD economist, delves into the persistent gender wage gap in advanced economies and its complexities. He reveals how vital firms' roles are in combating wage discrimination. The discussion highlights the impact of pay transparency legislation, illustrating how it can transform negotiations for women. Carcillo also addresses the hurdles smaller businesses face in implementing these measures and emphasizes the urgency of organizational policies that promote equitable pay and challenge societal stereotypes.

Marianne Bertrand, a Professor of Economics at the University of Chicago Booth School, dissects the surprising reluctance of Japanese men to take paternity leave. She reveals how entrenched cultural norms and employer pressures contribute to this trend despite generous policies. Bertrand shares insights on innovative solutions, including an engaging anime aimed at reshaping perceptions around paternity leave. This creative approach not only highlights the issues but also offers potential pathways for change in societal attitudes towards fatherhood in Japan.

Barbara Petrongolo, a Professor of Economics at the University of Oxford, dives deep into the complexities of gender inequality in the labor market. She discusses the paradox of women advancing in education yet still facing significant disparities at work. The conversation highlights how biases in early education can shape gender dynamics in fields like math. They also explore the impact of remote work during the pandemic on career progression for women and challenge societal norms that perpetuate these gaps, suggesting that understanding could lead to economic growth.

In this discussion, Pelin Ozgul, a researcher from the University of Maastricht, delves into how AI can enhance training for call center agents, ultimately boosting productivity. Nathan Vieira from Aix Marseille University analyzes the effectiveness of short-time work schemes in Europe, emphasizing the intricate relationships between employers, employees, and government. Deepakshi Singh of the University of Groningen examines the effects of droughts on female employment in India, questioning if an increase in jobs signifies true empowerment or merely a survival strategy. A thought-provoking exploration!

Michele Ruta, an economist at the International Monetary Fund and editor of 'The State of Globalisation,' delves into the evolving landscape of global economic flows. He explains how these flows are being redefined rather than retreating and discusses the implications for trade policies and industrial strategies. Ruta highlights the concept of tariff jumping investments and the rise of connector countries as key players in modern supply chains. He also addresses the complexities of U.S.-China trade dynamics and the importance of adaptability in an uncertain global market.

Morgane Richard, a Stanford researcher specializing in remote work's effects on housing markets, shares insights on how the shift to working from home has reshaped housing preferences. She explores the surge in demand for larger homes outside urban centers as people seek more space due to flexible work arrangements. The discussion highlights economic disparities, with non-remote workers bearing the brunt of rising costs, and underscores the need for policy changes to address the inequalities created in the housing market. It's a compelling look at the new dynamics of home buying in a post-Covid world.