Wage inequality has increased dramatically in the US since the 1970s, largely driven by within-firm earnings inequality. This column uses combined data from three large micro datasets to study the drivers and implications of within-firm inequality. It shows that employees across the entire wage distribution gain from higher firm productivity, but these gains are unequally […]
To achieve the internationally agreed temperature targets, increasingly stringent climate policies are of utmost importance. This column argues that theory-based scenarios, termed ‘economic pathways’, are a powerful tool to induce efficient policies. Calibrating a dynamic economic climate model to calculate different economic pathways reveals that deep decarbonisation only moderately delays economic development, while population growth […]
Carbon pricing initiatives, in the form of carbon taxes or emissions trading systems, have mushroomed in the last two decades, providing an opportunity to better understand their economic consequences. This column shows that emissions trading systems are associated with larger volatility in consumer price inflation, while no significant impact is found in the case of […]