EconPol Policy Briefs

EconPol Policy Briefs are short articles providing key findings of policy-related studies and policy implications from recent policy relevant economic research. Grounded in evidence-based insights, the Policy Briefs discuss current topics in economic and fiscal policy within a wide range of specific areas of expertise. By discussing implications of policy scenarios and the impact of economic policies in the face of the rapidly evolving challenges faced by the European economies and their global partners, EconPol Policy Briefs provide a well-founded economic policy advice to European policymakers. Focusing on key messages and policy conclusions, the Policy Briefs transfer expertise from researchers into the public debate and facilitate informed decisions.

A “Green Revolution” for Sub-Saharan Africa? Challenges and Opportunities

Michael Bernardi, Christa Hainz, Paulina Maier, Maria Waldinger

Sub-Saharan Africa ranks as one of the world’s poorest regions. The causes of this are exceptionally complex, with political instability, lack of security, low levels of education, poor access to infrastructure and lack of integration into global trade networks as the leading explanations, among others. In recent decades, economists and agricultural development experts have been looking for ways to increase agricultural productivity in Sub-Saharan Africa through improved seeds, fertilisers and more modern farming technologies. This article looks at the measures in question, what has been done so far, and how scientists assess the effectiveness of these measures on agricultural productivity and poverty reduction. Finally, we present concrete recommendations.

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Working from Home Around the Globe: 2023 Report

Cevat Giray Aksoy, Jose Maria Barrero, Nicholas Bloom, Steven J. Davis, Mathias Dolls, Pablo Zarate

How prevalent is remote work on a global scale? What are the prevailing modes of working arrangements at present? What are the foremost advantages of working from home and on employer's business premises? Is there a need for policy intervention? Our new Global Survey of Working Arrangements provides new insights to answer these questions.

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The Role of Income Support Systems as Income Stabilizers in Times of Crisis

Mathias Dolls, Max Lay

This Policy Brief examines how minimum income support (MIS) schemes contribute to the stabilization of disposable incomes in times of crisis in Europe. MIS systems act as a “safety net of last resort” in many European welfare states, but to varying degrees. The results from the simulation of stylized unemployment shocks hitting labor markets suggest that the tax-transfer system overall contributes to income stabilization in periods of crises. However, the MIS schemes’ individual contribution is relatively small, especially as set against the unemployment insurance system.

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The Effect of Subject-Specific Teacher Qualifications on Student Science Achievement

Vera Freundl, Pietro Sancassani

What makes a good teacher? This is one of the central questions in the economics of education. General teacher qualifications, such as education level or advanced degrees, tend to be poor predictors of teacher quality. Instead, some studies have shown that subject-specific qualifications predict teacher quality better. However, the vast majority of such studies are based on data from the United States. It is therefore unclear to what extent the findings can be generalized to other nations, as teacher education programs vary widely across countries. The lack of international evidence is particularly problematic for developing economies, which would arguably benefit most from improving student achievement.

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NATO Defense Spending in 2023: Implications One Year After Russia’s Invasion of Ukraine

Florian Dorn, Niklas Potrafke, Marcel Schlepper

War is raging close to NATO's Eastern border. Russia has attacked Ukraine and threatens those states that in the past had been part of Moscow's sphere of influence. Many of them are now member states of NATO. As a collective defense alliance, this poses a threat to all NATO members. Since the ability to defend against an aggressor does not come for free, defense spending will be on the agenda at the NATO Summit in Vilnius in July 2023. NATO Secretary General Jens Stoltenberg has already expressed his expectation that all member states no longer see the 2% target as a mere ambition, but as the floor for their future defense spending. This paper presents first results for the expected defense spending of the 30 NATO members and the candidate country Sweden in 2023.

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