News
Looking for research assistants!
IFN is seeking two research assistants for two months in the summer of 2018. To a large extent the daily work will entail the day-to-day work of a researcher. The chores varies: compiling literature, compiling data for data bases, or working with STATA, i.e coding for proper analysis of given data. Preferably you should have completed your master in Economics or be at the very end of the master program. You ought to be interested in research with relevance for the Industry and have the ambition to continue to a Ph.D. program in the future.
Basic income – a particularly expensive story
Andreas Bergh and Mårten Blix, IFN are two of the authors to the anthology Money for Nothing – Essays on Basic Income (Timbro, 2018) “The welfare state […] is based on the theory that if you can work and support yourself you should do so,” writes Bergh. Mårten Blix, has calculated the cost of introducing a basic income/salary. “If all of Sweden’s around 10 million inhabitants would be given a monthly basic income of SEK 12 000 after tax it would be equivalent to [….] 33 percent of GDP. This shouldf be compared to the total expenses in the public sector that amounted to around 50 percent of the GDP in 2016.”
Academic papers read by many
Niclas Berggren, Henrik Jordahl, IFN and Panu Poutvaara are the authors of the study “The right look: Conservative politicians look better and voters reward it” that was recently published in the peer reviewed research magazine Journal of Public Economics. The article is the most downloaded article the last 90 days. It is also the article that has had the largest penetration in social media. For example, it has rendered 700 comments on Facebook. The article “Taxation of Swedish Firm Owners: The Great Reversal from 1970s to 2010s” by Magnus Henrekson, IFN, has been publicized in the Nordic Tax Journal and awarded with a honorable mention in 2017 by the paper’s editorial committee.
Appreciated critique of a limit on profit in the welfare sector
A guest column in Svenska Dagbladet by Henrik Jordahl has received considerable attention, including an unusually large amount of readers’comments. Most of them writing that they appreciate his critique of the government’s suggestion to introduce a limit on profit in the welfare sector. Henrik Jordahl explains that he wrote the article being “upset with the government that for the exercise of political power has decided to go along with a suggestion that is so obviously inferior”. In the article he describes how the government encourages larger cooperation to buy properties and to do financial number twisting to circumvent the consequences of this regulatory proposal. Henrik Jordahl argues that the government thereby creates a damaging “profit hunt”, the very same they claim to be working against.
Researchers: Lower tax on income and raise taxes on capital
Daniel Waldenström, IFN, chairman of the SNS Economic Policy Council, presented the 2018 Council Report at a seminar January 19. Co-authors have been Åsa Hansson, Associate Professor, Lund University.and Spencer Bastani, Associate Professor, Linnæus University. The Researchers suggest that the tax on income should be lowered but that the tax on capital should be higher. “Our suggestions to not alter the total burden of taxation” said Daniel Waldenström when the report was presented at SNS.
Calmfors appointed to Norwegian labor market committee
Lars Calmfors, IFN, has been appointed by the Norwegian Government to to be part of an expert group to study the labor market. The chairman of the group is Professor Steinar Holden. "Compared with other Nordic countries, Norway has had a rather poor development in terms of employment rates," explains Lars Calmfors. Employment has fallen in recent years, especially among men and youth, explains the Norwegian government in a press release. "It is important that we get facts on the table and that experts review what we know about what works and does not work in the labor market," says Labor and Social Affairs Minister Anniken Hauglie.
Fostering breakthrough entrepreneurship
At the end of last year an articles by Per Hjertstrand, Pehr-Johan Norbäck, Lars Persson, IFN, et al was published at Vox, CEPR's policy portal. The researchers have looked into the fact that most developed economies provide significant subsidies to small businesses. The reason being to encourage innovation. In the Vox-article the researchers argue that while subsidies to reduce entry costs may increase entrepreneurial entry, they can also lead to a reduction in the likelihood of ‘breakthrough’ inventions.
What matters for self-employment: Size or characteristics of ethnic enclaves?
In a new working paper Martin Andersson (affiliated to IFN), Johan P Larsson and Özge Öner (IFN) have studied how self-employment among immigrants from the Middle East is influenced by residency in an ethnic enclave. The researchers show a robust tendency for people to leave non-employment for entrepreneurship if many members of the local diaspora are business owners. Immigrants appear to be significantly less stimulated by people that are not ethnic peers. Though, it appears that it is not the scale, but the quality of local ethnic enclaves that above all influence labor market outcomes for immigrants.
Happy Holidays!
Every year IFN arranges a series of seminars open to the public. Topics for these are chosen from IFN's fields of research. During 2017, most of the seminars have been filmed, and four out of six seminars were in English. Having some free time during the holidays? If so, you might be interested in watching one of these recordings.
Examples we can learn from: The US, Canada, Great Britain and New Zealand!
A second report on integration should probably also be written, said Andreas Bergh, IFN and Lund University, when commenting on the ESO report Inspiration for Integration, by Patrick Joyce, Ratio. The report compares integration policies in Sweden, Norway, Denmark, the Netherlands and Germany. Joyce stated that Germany is the country that has been most successful to integrate immigrants in the labor market, in the short and long term. But, Andreas Bergh said, it would have been better to discuss the labor market in Britain, the United States, Canada and New Zealand. He explained that these countries could better serve as sources of inspiration. Among other things, earned income tax credit can be an alternative to subsidies to employers to hire new arrivals.
Pär Holmberg on LSE blog about saving taxpayers billions of dollars
A minor change in market trading rules could save taxpayers billions of dollars. This is the conclusion that Pär Holmberg, IFN, draws from his research in a blog post at LSE Business Review. Holmberg argues that when ties occur at low offer prices, higher priority should be given to sell orders with a large volume. "The cost to implement the new pro-competitive rule would be negligible compared to the savings, when the turnover is high" Holmberg writes.
Seminar in Brussels: EU has to open up to new ideas and new business
Brussels | Magnus Henrekson, IFN, presented the report Institutional Reform for Innovation and Entrepreneurship: An Agenda for Europe (Project Fires) at a seminar hosted by the Permanent Representation of Sweden to the EU and jointly organized by the Confederation of Swedish Enterprise and IFN. The study calls for more productive entrepreneurship to improve the quality of life of EU citizens, and for the EU to enhance the competitiveness in the global marketplace. The panel agreed that the same recipe doesn't apply to all member states. Though, Gunnar Hökmark, MEP (M), argued that some things fit all member states, for example less regulation and more openness for competion.
Integration is a complex issue - everywhere
Edward Lazear of Stanford University visited IFN on Wednesday and launched a public seminar. Lazear has studied immigration to the United States, as well as to Sweden, and found that the underlying mechanisms are much the same in both countries. He explained that the success of the new arrivals is more dependent on the rules set by the recipient country than the country from which new arrivals have come. If integration is defined as immigrants learning the language of the new country, those immigrants living in areas with many people from their old home country are integrated, into society as a whole, at a much lower rate.
"Digitization moves fast, the one who stands still will fall behind"
Mårten Blix, IFN, explains in a new pod how come that he studies the effects of digitization on public finances. He compares the digitization with electrification and says that the big difference to previous technology leaps is the speed with which the digital reality comes to us. The one who is interested in the development and who keeps up with progress will benefit, he says, explaining that it is primarily not jobs as such that disappear with technical progress but the content in jobs.
Trade could impact political polarization
Has expanding trade between the U.S. and China contributed to the polarization of U.S. politics? Analyzing outcomes from the 2002 and 2010 congressional elections, Kaveh Majlesi, Lund University and affiliated to IFN, along with David Autor, David Dorn and Gordon Hanson have detected an ideological realignment in trade-exposed local labor markets that commences prior to the 2016 U.S. presidential election.
Tax-payers would save billions with new trading rules
Society could save billions of dollars every day if trading in commodities, energy and securities was made more competitive through a minor rule change, according to the new paper “Pro-competitive rationing in multi-unit auctions”, which is to be published in Economic Journal.
Research on trust is rewarded
Martin Ljunge, researcher at IFN, has been appointed Associate Professor in Economics at Södertörn University. Ljunge graduated from the University of Chicago in 2006. His research field is primarily social economics. One of the questions he seeks to answer in his research is how trust affects the health and well-being of individuals. His latest study is titled "The ‘Healthy Worker Effect’: Do Healthy People Climb the Occupational Ladder?". Just recently he has been awarded funding from the Riksbankens Jubileumsfond for a project "aimed at deepening our understanding of financial decisionsmade by immigrants in Sweden".
Research goes on the air ...
Radio and podcasts, like television, are becoming more common for for all of us to gain knowledge about research and research results. More and more newspapers make television and radio programs. When the book of Kunskapssynen och pedagogiken (Dialogos 2017) was recently presented, the magazine Axess produced both television and podcasts of an interview with Magnus Henrekson. In addition, Public Service (SVT) interviewed on the same book in the show "Politik i bokhyllan" (Policy in the bookshelf). EFN TV, run by Handelsbanken, has recently interviewed Mårten Blix about digitization and the former TV journalist Morgan Olofsson did the same thing in his podd För friheten! (For freedom !).
Read about IFN in English language media
Childbirth prevents female executives from reaching the top
At the age of 40, the likelihood is lower that women than men are CEOs for larger firms. In addition, the women have more rarely management jobs with top wage. Differences in qualifications can't explain this, as female managers are generally more qualified than men. Instead, the differences are explained by the fact that women are lagging behind in their career following the birth of a first child. This shows new research by Joacim Tåg, IFN, Matti Keloharju, Alto University, and Samuli Knupfer, BI Norwegian Business School.
Seminar: Educational perspective and pedagogy
In their new book, Kunskapssynen och pedagogiken (Educational Perspective and Pedagogy; Diagolos Förlag), Inger Enkvist, Magnus Henrekson, Martin Ingvar and Ingrid Wållgren explain that today's view of knowledge lacks validation in both research and demonstrated experience. At a seminar in Stockholm, three of the authors explained that teacher training and education must focus on understanding the brain mechanisms that allow us to learn new things and remember them.