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Abstract: Nonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid-1990s in a number of European countries such as Italy, Latvia, Norway, Poland, and Sweden. The NDC approach features the lifelong contribution-benefit link of a financial defined contribution (FDC) personal account scheme, but is based on the pay-as-you-go format. At its start-up, the pay-as-you go commitments of the preceding defined benefit (DB) system are converted into individua ...; [Read more...] Nonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid-1990s in a number of European countries such as Italy, Latvia, Norway, Poland, and Sweden. The NDC approach features the lifelong contribution-benefit link of a financial defined contribution (FDC) personal account scheme, but is based on the pay-as-you-go format. At its start-up, the pay-as-you go commitments of the preceding defined benefit (DB) system are converted into individual personal accounts, allowing for a smooth transition from the DB to the DC format, while avoiding the very high transition costs inherent in a move from a traditional pay-as-you-go DB scheme to a fully funded FDC scheme. The NDC approach implemented by the rule book is able to manage the economic and demographic risks inherent to a pension scheme and by design creates financial sustainability. As in any pension scheme, the linchpin between financial stability and adequacy is the retirement age; in the NDC approach the individual retirement age above the minimum age is by design self-selected and by incentives should increase the effective retirement age in line with population aging.

Abstract: As concerns over growing levels of student loan debt continue to mount for both students and taxpayers, many have called for an improved accountability system in the U.S. higher education system. In this policy brief, I discuss the many flaws in our current system, and outline how a system known as “risk-sharing” could drastically improve incentives and outcomes. I present a framework for how risk-sharing could be structured, and illustrate the distributional impacts (both positive and ...; [Read more...] As concerns over growing levels of student loan debt continue to mount for both students and taxpayers, many have called for an improved accountability system in the U.S. higher education system. In this policy brief, I discuss the many flaws in our current system, and outline how a system known as “risk-sharing” could drastically improve incentives and outcomes. I present a framework for how risk-sharing could be structured, and illustrate the distributional impacts (both positive and negative) across the higher education landscape.

Abstract: Higher education is in the position to save Europe by rendering a substantial contribution to sustainable economic growth. For that purpose higher education must strengthen its innovative power in entrepreneurship education and by focusing research more on societal problems, while being better empowered and enabled by Governments. Universities must show leadership in resolving or channeling the major societal questions. More European competition between universities in education and re ...; [Read more...] Higher education is in the position to save Europe by rendering a substantial contribution to sustainable economic growth. For that purpose higher education must strengthen its innovative power in entrepreneurship education and by focusing research more on societal problems, while being better empowered and enabled by Governments. Universities must show leadership in resolving or channeling the major societal questions. More European competition between universities in education and research would be helpful. Universities can contribute to recreating hope and optimism through more innovation in the economy.

Abstract: Italy has probably been one of the first ships to cross the storm of the pandemic, soon after Wuhan in China, and one of the worst performers with a GDP fall of -10% in 2020. The reason is that the pandemic recession has drawn on old structural problems, which already before the pandemic made the country one of the worst performers in terms of growth rates in Europe in the last 20 years. The evils of Italy are well known. It is the second biggest manufacturer in Europe, but also among ...; [Read more...] Italy has probably been one of the first ships to cross the storm of the pandemic, soon after Wuhan in China, and one of the worst performers with a GDP fall of -10% in 2020. The reason is that the pandemic recession has drawn on old structural problems, which already before the pandemic made the country one of the worst performers in terms of growth rates in Europe in the last 20 years. The evils of Italy are well known. It is the second biggest manufacturer in Europe, but also among the most traditional ones. Made in Italy, despite moving up in terms of quality and skilled content, still remains the most exposed to the competition from emerging market economies. The crisis was already ongoing when Italy joined the euro currency, and the strong currency made things worse. The necessary industrial upgrading from traditional manufacturing to the new branches of industry would have required strong public investment in infrastructure, which were not allowed or not possible due to the Maastricht Treaty of 1993, the economic and financial crisis at the end of the 2000s, and the Fiscal compact of 2012. The pandemic has changed the mind of the European Union (EU) governance.

Abstract: This paper addresses the directions to follow when designing new educational systems and school-to-work transition regimes to adhere to the needs of Industry 4.0. Although a high level of general education will be important for its training content to develop adaptability, it is not the only component to develop. What will be more and more important are work related skills, both the general ones and the ones which are job-specific and need, therefore, on-the-job training to develop. Th ...; [Read more...] This paper addresses the directions to follow when designing new educational systems and school-to-work transition regimes to adhere to the needs of Industry 4.0. Although a high level of general education will be important for its training content to develop adaptability, it is not the only component to develop. What will be more and more important are work related skills, both the general ones and the ones which are job-specific and need, therefore, on-the-job training to develop. This will require important educational reforms to favour an ever-better integration between educational institution and the world of work. Young people and their families alone will not be able to adapt on their own to the new human capital requirements of Industry 4.0 production. A new framework for an integrated action by governments, firms, educational institutions and families is needed to smooth the school-to-work transition in the future. The duality principle is the basis for a strong diversification of the supply of education.

Abstract: To improve the employment rates and earnings of Americans workers, we need to create more coherent and effective education and workforce development systems, focusing primarily (though not exclusively) on disadvantaged youth and adults, and with education and training more clearly targeted towards firms and sectors providing good-paying jobs. This paper proposes a new set of competitive grants from the federal government to states that would fund training partnerships between employers ...; [Read more...] To improve the employment rates and earnings of Americans workers, we need to create more coherent and effective education and workforce development systems, focusing primarily (though not exclusively) on disadvantaged youth and adults, and with education and training more clearly targeted towards firms and sectors providing good-paying jobs. This paper proposes a new set of competitive grants from the federal government to states that would fund training partnerships between employers in key industries, education providers, workforce agencies and intermediaries at the state level, plus a range of other supports and services. The grants would especially reward the expansion of programs that appear successful when evaluated with randomized control trial techniques. The evidence suggests that these grants could generate benefits that are several times larger than their costs, and would therefore lead to higher earnings and lower unemployment rates among the disadvantaged.

Abstract: What are the migration policy lessons that can be learned from the Spanish case? Unlike countries with a large tradition of receiving immigrants, in Spain having a high-school degree does not give immigrants an advantage in terms of wage or occupational assimilation (relative to their native counterparts). This paper discusses the potential explanations behind this result and analyzes the consequences of this result in terms of migration policy recommendations.

Abstract: Higher education contributes to economic innovation. This study measures and compares the extent to which national governments’ policies foster this contribution across Europe. The study stresses the relevance of policies which are ‘empowering’ for higher education institutions, or in other words provide them with appropriate resources and regulatory environments. The assessment relies on quantitative scores, based on the contribution of policies regarding funding and autonomy to highe ...; [Read more...] Higher education contributes to economic innovation. This study measures and compares the extent to which national governments’ policies foster this contribution across Europe. The study stresses the relevance of policies which are ‘empowering’ for higher education institutions, or in other words provide them with appropriate resources and regulatory environments. The assessment relies on quantitative scores, based on the contribution of policies regarding funding and autonomy to higher education performance in education, research and economic innovation, using non-arbitrary weights and eighteen policy indicators across 32 European countries. A large number of countries belong to a ‘middle group’ in our overall assessment, indicating a relative cohesion in Europe. Yet, substantial variations exist in terms of higher education policy in Europe, each European country having room for policy improvement.

Abstract: This policy analysis paper explores the implications for the host country population of alternative immigration policies. The two immigration options considered are a policy based on admitting primarily high-skilled workers and another that has the effect of admitting primarily low-skilled workers. The implications for the native-born population for their aggregate level of income, the distribution of their income by skill level, and the size of the income redistribution system are con ...; [Read more...] This policy analysis paper explores the implications for the host country population of alternative immigration policies. The two immigration options considered are a policy based on admitting primarily high-skilled workers and another that has the effect of admitting primarily low-skilled workers. The implications for the native-born population for their aggregate level of income, the distribution of their income by skill level, and the size of the income redistribution system are considered. The paper was prepared for the Productivity Commission of Australia.