Demand for less skilled workers decreased dramatically in the US and in other developed countries over the past two decades. WE argue that pervasive skill-biased technological change, rather than increased trade with the development world, is the principal culprit. The pervasiveness of this...

In this paper we study the causal impact of police on crime by looking at what happened to crime before and after the terror attacks that hit central London in July 2005. The attacks resulted in a large redeployment of police officers to central London boroughs as compared to outer London - in...

Between 1993 and April 1999 there was no minimum wage in the United Kingdom (except in agriculture). In this paper we study the effects of the introduction of a National Minimum Wage (NMW) in April 1999 on one heavily affected sector, the residential care homes industry. This sector contains a...

During this election period many Americans are feeling angry towards the very rich, especially those working in the financial sector, who helped cause the Great Recession and yet were bailed out by the government. Increases in inequality might be tolerable at a time of growing consumption for...

Recessions lead to short-term job loss, lower levels of happiness and decreasing income levels. There is growing evidence that workers who first join the labour market during economic downturns suffer from poor job matches that have a sustained detrimental effect on their wages and career...

Education is an area that is highly devolved in the UK, and the fact that all four constituent countries have pursued very different policies in the recent past provides a good testing ground to undertake a comparative review of the merits or otherwise of the education reforms that have taken...

Existing research shows that house prices respond to local school quality as measured by average test scores. However, higher test scores could signal better quality teaching and academic value-added, or higher ability, sought-after intakes. In our research, we show decisively that value-added...

Stephen Machin surveys CEP's pathbreaking research findings on wage inequality.

Britain is an unequal country, more so than many other industrial countries and more so than a generation ago. This is manifest in many ways - most obviously in the gap between those who are well off and those who are less well off. But inequalities in people's economic positions are also...

Overall wage and income inequality rose slightly under the Labour government since 1997. This was driven by the top half (especially the top 10 per cent) of the income distribution. There was no change in inequality (and even falls on some measures) for those in the bottom half of the...