Economics

How much do parents value a safe environment, green spaces and a good education for their children? Such things are priceless – except that, of course, they are not. The best things in life may be free, but buying a house in the vicinity of the best things in life is expensive.

Economic researchers use house prices like a movie jewel-thief uses an aerosol spray. The aerosol isn’t important by itself, but it reveals the otherwise invisible laser beams that will trigger the alarm. The house prices aren’t necessarily of much direct interest, but indirectly they reveal our willingness to pay for anything from a neighbourhood free of known sex offenders to the more familiar example of a popular school. Read more

Chris Cook

It is fairly well established, as various people have pointed out over the past few days, that poor children in the UK are more likely to be overweight than their richer peers. This is often seen as a curious reversal of older norms: poor children used to be lean.

But one aspect of modern poverty is the same as ever. Inner city school leaders sometimes talk about children looking poorer than others. What they are referring to is not weight, but height. Poor kids are usually shorter (especially ex-refugees). Read more

Kate Allen

Once the US presidential campaign is finished and the election won, the victorious candidate could be forgiven for thinking that the hard work has been completed. Whatever the state of the economy, the voters have chosen their set of policies and all that is needed now is to begin implementing them.

But the economy that the (re-)elected candidate thinks he is set to inherit may turn out to be quite different by the time of his inauguration. Read more

Chris Cook

Next week, the Department for Education is unveiling access to the Key Stage 4 league tables. The interesting policy thing to watch for is how many schools are under the floor target – these schools are at risk of a takeover by an academy chain. This is not straightforward: academy chains are not all equal, there is a limit to how far they can grow -and some of them are already struggling with the load they have.

Based on early drafts of the data returns (and assuming the DfE doesn’t calculate this stuff in an odd way*), about 240 schools last year failed to get 40 per cent of their pupils Cs in English, maths and three others. Of these, about 220 had a below-average number of pupils making “adequate progress” in English and maths, putting them at risk of takeovers.

Before the DfE starts its getting-tough-on-failing-schools routine, I thought I would update and republish two graphs. First, I have worked out what happens if you remove the failing schools. Answer: not an enormous amount. As ever, these are average results for poor pupils (on the left) running over to the richest (on the right).

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Valentina Romei

Labour productivity continues to fall in the UK, today’s latest ONS release shows.

Output per hour dropped by 0.2% in Quarter 3, 2012, compared to the previous quarter. This means a fall of over 2% compared to the same period last year and over 3% compared to the pre-crisis period. This is a particularly striking drop considering than in the five years before the financial crisis labour productivity rose by over 12%.

The reasons for this remain rather a puzzle. And a look at other European countries confirms that the UK is unusual. But it’s not unique. Most core European countries had a drop in productivity levels compared to those in the US. But their performance varied considerably during the last few years of economic crisis, as this chart highlights … Read more

Valentina Romei

Chinese exports grew less than expected in November, fueling fears of a further economic slowdown. But exports from western inland Chinese regions have never grown so fast as in 2012, beating export growth rates of the rich industrial coastal regions.

Chinese export growth declined to 2.9 per cent in November from 11.6 per cent in October. On a rolling 12-month sum exports grew at an annual rate of 7.9 per cent in November, a figure well below the more than 30 per cent growth of the late 2010 and early 2011 and marks a 28-month record low. But not all regions in China experienced the same slowdown.

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