The US has legislated to abolish its social security earnings test. A priori it is not possible to predict the effect this will have on work incentives. Using data from the Family Expenditure Survey we show that the abolition of the earnings rule in the UK increased the number of hours worked by...

This paper introduces a recursive algorithm with which to generate complete and accurate budget constraints using static microsimulation models. We describe the generic algorithm and discuss and extension by which reasons for any change in the marginal effective tax rate may be explained. We...

In this paper a rich and innovative dataset, the International Adult Literacy Survey, is used to examine the impact of functional literacy on earnings. The IALS surveys 12 OECD countries and sub-regions via a consistent questionnaire and includes a number of tests of numeracy and literacy, as...

This paper exploits an unusual policy reform that had the effect of reducing the direct cost of schooling in Ireland in the late 1960s. This gave rise to an increased level of schooling but with effects that vary substantially across family background. This interaction of educational reform and...

This paper uses pooled cross-section data on recent school leavers in Ireland to model the determinants of labour market status and wages for young adults. Firstly we use a multinomial logit model to analyze whether individuals exit school to employment, unemployment or higher education. Family...

This paper uses pooled cross-section data on recent school leavers in Ireland to model the determinants of labour market status and wages for young adults. Firstly we use a multinomial logit model to analyze whether individuals exit school to employment, unemployment or higher education. Family...

There is a vast empirical literature of the effects of training on wages that are taken as an indirect measure of productivity. This paper is part of a smaller literature on the effects of training on direct measures of industrial productivity. We analyse a panel of British industries between...

Many writers have claimed that R&D has two 'faces'. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer by improving the ability of firms to learn about advances in the leading edge ('absorptive capacity'). In this paper we document that there has...

Monte Carlo studies have shown that estimated asymptotic standard errors of the efficient two-step generalised method of moments (GMM) estimator can be severely downward biased in small samples. The weight matrix used in the calculation of the efficient two-step GMM estimator is based on initial...

Patents citations are a potentially powerful indicator of technological innovation. In this paper we describe the IFS-Leverhulme patents dataset that we have constructed by combining information from the US Case-Western Patent database with UK company accounts and share price information from...