Ian Gregory-SmithSecond year economics undergraduate student, Russell Elsdon, will work on the project “Executive Directors’ Biographies” supervised by InstEAD research affiliate Ian Gregory-Smith secured competitive funding from the Sheffield Undergraduate Research Experience (SURE) scheme.

A major gap in the literature on executive compensation concerns the assignment of causality. Does executive pay drive corporate performance, or does corporate performance drive executive pay? Or are both performance and pay are driven by other variables such as human capital? The project will model payments to company directors, the extent to which performance and reward are connected and the accumulation of human capital. The project will undertake a structural approach providing causal estimates relating to executive pay-setting in the UK.

 

InstEAD research affiliate Steve McIntosh presented his work on the value of apprenticeships to the Edge Foundation and Department for Education Research Review Group on 12 April 2018.

 

Photo of Prof Andy DickersonInstEAD research affiliates Andy Dickerson and Damon Morris presented their work on the on the Changing Demand for Skills in the UK at the Royal Economic Society Annual Conference on 26-28 March 2018.

Also they presented the same research at the 2nd IZA Labor Statistics Workshop on 26 April 2018.

They find positive and significantly increasing returns to analytical skills during 2002-2016. While the returns to interpersonal skills are lower than to analytical skills, they are also increasing over time, and are significant especially post-2010. The returns to physical skills are significantly negative over the whole period.

 

 

InstEAD research affiliate Emily McDool presented work at the LEER conference on Education Economics, held at KU Leuven, Belgium, March 28-29, 2018.

Emily presented her new paper examining the effects of dividing children into different classes based on academic ability on their non-cognitive outcomes.

Read the working paper ‘Class Setting and Children’s Non-Cognitive Outcomes‘.

 

Professor James Banks gave the 2018 InstEAD Annual Lecture on ‘Extending working lives: a solution to the challenges of an ageing population?’

He gave an insightful perspective on the issue of an ageing population and argued that working longer was necessary to overcome some of the challenges of increased life expectancy.

Perhaps unsurprisingly, he said that in the near future our pensions are likely to be less generous, the state pension age will increase and we’re going to need to work for longer into our old age. However, this should not necessarily be seen negatively as it provides opportunities to consider older people’s working capacity and skills and identify the kinds of work available to them.

Part of James’ research with the English Longitudinal Study of Aging (ELSA) estimates what percentage of older people are healthy enough to work and explores the incentives that could encourage people to work more as they get older.

James presented six different cohorts of people who were born this century and showed what percentage of their lives they would have typically spent working. People born between 1900 – 1904 would have spent about 66% of their lives in work, whereas those born between 1970 – 1974 are likely to only spend 52% of their lives working.

He went onto say that this reduction in our working lives is a challenge for individual households and for governments. James also touched on some of the intergenerational issues such as older people not working because there are looking after their grandchildren, enabling their own children to work. Also grandparents may be helping their children or grandchildren to pay off debts such as tuition fees.

Also government policy in health, social care, disability, work and tax will all have to be more joined up in the future to cope with our aging population.

Download the slides from the 2018 InstEAD Annual Lecture (PDF 1MB).