Research
Are Ideas Getting Harder to Find?
Nick Bloom, Chad Jones, John Van Reenen, Michael Webb
American Economic Review, vol. 110, no. 4, April 2020 (pp. 1104-44)
In many models, economic growth arises from people creating ideas, and the
long-run growth rate is the product of two terms: the effective number of
researchers and their research productivity. We present a wide range of evidence
from various industries, products, and firms showing that research effort is
rising substantially while research productivity is declining sharply. A good
example is Moore's Law. The number of researchers required today to achieve the
famous doubling every two years of the density of computer chips is more than 18
times larger than the number required in the early 1970s. Across a broad range
of case studies at various levels of (dis)aggregation, we find that ideas — and
the exponential growth they imply — are getting harder to find. Exponential
growth results from large increases in research effort that offset its declining
productivity.
The Impact of Artificial Intelligence on the Labor Market
Michael Webb
Media coverage: Wall
Street Journal,
New
York
Times, Bloomberg,
Fast
Company,
Vox,
Seattle Times, Mercury News, MIT Technology Review
I develop a new method to predict the impacts of a technology on occupations. I use the overlap between the
text of job task descriptions and the text of patents to construct a measure of the exposure of tasks to
automation. I first apply the method to historical cases such as software and industrial robots. I establish
that occupations I measure as highly exposed to previous automation technologies saw large declines in
employment and wages over the relevant periods. I use the fitted parameters from the case studies to predict
the impacts of artificial intelligence. I find that, in contrast to software and robots, AI is directed at
high-skilled tasks. Under the assumption that the historical pattern of long-run substitution will continue,
I estimate that AI will reduce 90:10 wage inequality, but will not affect the top 1%.
Does Information About AI Regulation Change Manager Evaluation of Ethical Concerns and Intent to Adopt AI?
Mariano-Florentino Cuéllar, Benjamin Larsen, Yong Suk Lee, Michael Webb
The Journal of Law, Economics, and Organization, 2022
We examine the impacts of potential artificial intelligence (AI) regulations on
managers’ perceptions on ethical issues related to AI and their intentions to adopt
AI technologies. We conduct a randomized online survey experiment on more than a
thousand managers in the United States. We randomly present managers with different
proposed AI regulations, and ask about ethical issues related to AI and their intentions
related to AI adoption. We find that information about AI regulation increases manager
perception of the importance of safety, privacy, bias/discrimination, and transparency
issues related to AI. However, there is a tradeoff; regulation information reduces manager
intent to adopt AI technologies. Moreover, information about regulation increases manager
intent to spend on developing AI strategy including ethical issues at the cost of investing
in AI adoption, such as providing AI training to current employees or purchasing AI software
packages.
Some Facts of High-Tech Patenting
Michael Webb, Nick Short, Nick Bloom, Josh Lerner
NBER Working Paper, July 2018
Patenting in software, cloud computing, and artificial intelligence has grown
rapidly in recent years. Such patents are acquired primarily by large US
technology firms such as IBM, Microsoft, Google, and HP, as well as by Japanese
multinationals such as Sony, Canon, and Fujitsu. Chinese patenting in the US is
small but growing rapidly, and world-leading for drone technology. Patenting in
machine learning has seen exponential growth since 2010, although patenting in
neural networks saw a strong burst of activity in the 1990s that has only
recently been surpassed. In all technological fields, the number of patents per
inventor has declined near-monotonically, except for large increases in inventor
productivity in software and semiconductors in the late 1990s. In most high-tech
fields, Japan is the only country outside the US with significant US patenting
activity; however, whereas Japan played an important role in the burst of neural
network patenting in the 1990s, it has not been involved in the current
acceleration. Comparing the periods 1970-89 and 2000-15, patenting in the
current period has been primarily by entrant assignees, with the exception of
neural networks.
How Does Automation Destroy Jobs? The 'Mother Machine' in British Manufacturing, 2000-2015
Michael Webb, Daniel Chandler
The machine tool is a key technology used in many manufacturing industries.
Originally operated by hand, machine tools have seen substantial automation in
recent decades. We first study the effects of the automation of machine tooling
on firm survival and employment in the context of rising Chinese import
competition between 2003 and 2015. Using an original private census of machine
tool use in manufacturing plants, we show that the level of automation had a
strong positive association with firm survival, and that greater initial automation was
associated with increases in employment both within firms and commuting zones.
In work still in progress, we combine the private census with administrative
data to assess automation's effects on wages and productivity.
A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium
Emanuele Colonnelli, Joacim Tåg, Michael Webb, Stefanie Wolter
AEA Papers and Proceedings,
vol. 108, May 2018
(pp. 323-27)
We provide stylized facts on the existence and dynamics over time of the
large firm wage premium for four countries. We examine matched
employer-employee micro-data from Brazil, Germany, Sweden, and the UK, and
find that the large firm premium exists in all these countries. However, we
uncover substantial differences among them in the evolution of the wage
premium over the past several decades. Moreover, we find no clear evidence
of common cross-country industry trends. We conclude by discussing potential
explanations for this heterogeneity, and proposing some questions for future
work in the area.
On-the-job Training and Human Capital: An Equilibrium Search Model of Wage Dynamics
Richard Blundell, Monica Costa Dias, Costas Meghir, Michael Webb
We estimate a dynamic model of female labor supply and human capital
accumulation using unique panel data from the UK. We allow returns to work
experience to differ by level of education and also allow for differential
experience effects of part-time and full-time employment. We use the model to
examine the gender gap in earnings and to assess the impact of reforms to tax
credits and to welfare benefits on human capital investments and labor supply.
We also use direct measures of training to explore the potential role of
training in offsetting human capital depreciation and enhancing life-cycle
earnings.
Effectiveness of Dietary Policies to Reduce Noncommunicable Diseases
Ashkan Afshin, Renata Micha, Michael Webb, Simon Capewell, Laurie Whitsel, Adolfo
Rubinstein, Dorairaj Prabhakaran, Marc Suhrcke, and Dariush Mozaffarian
In Disease Control Priorities (third edition): Volume 5, Cardiovascular, Respiratory, and
Related Disorders, edited by D. Prabhakaran, S. Anand, T. A. Gaziano, J.-C. Mbanya, Y. Wu, and R.
Nugent. Washington, DC: World Bank. November 2017.
This chapter reports that in nearly every region, suboptimal diet remains the leading risk factor for poor
health; hunger and malnutrition result in substantial burdens and contribute to the incidence and prevalence
of noncommunicable diseases (NCDs). Specific population interventions, including taxation and subsidies,
food regulations, mass media campaigns, and school and workplace interventions, appear effective in
improving diet, and many such interventions may prove highly cost-effective (efficient health gained per
dollar spent) or even cost saving (health gains with reduced overall spending). These interventions prove
highly attractive and complement the preventive health system strategies promoted in high-, middle-, and
low-income countries. Selected policy interventions may also reduce health disparities. Specific knowledge
gaps remain in quantitative effectiveness and cost-effectiveness of several dietary policies in different
settings and within different population subgroups, however. These gaps highlight the urgent need for
governments, foundations, advocacy groups, and private industry to prioritize relevant implementation and
evaluation of these approaches.
Cost Effectiveness of a Government Supported Policy Strategy to Decrease Sodium Intake: Global Analysis
Across 183 Nations
Michael Webb, Saman Fahimi, Gitanjali M Singh, Shahab Khatibzadeh, Renata Micha, John
Powles, Dariush Mozaffarian
The BMJ, January 2017, 356: p. i6699
We quantified the cost effectiveness of a government policy combining targeted industry agreements and
public education to reduce sodium intake in 183 countries worldwide. We studied a “soft regulation” national
policy that combines targeted industry agreements, government monitoring, and public education to reduce
population sodium intake, modeled on the recent successful UK program. To account for heterogeneity in
efficacy across countries, a range of scenarios were evaluated, including 10%, 30%, 0.5 g/day, and 1.5 g/day
sodium reductions achieved over 10 years. We characterized global sodium intakes, blood pressure levels,
effects of sodium on blood pressure and of blood pressure on cardiovascular disease, and cardiovascular
disease rates in 2010, each by age and sex, in 183 countries. Country specific costs of a sodium reduction
policy were estimated using the World Health Organization Noncommunicable Disease Costing Tool. Country
specific impacts on mortality and disability adjusted life years (DALYs) were modeled using comparative risk
assessment. We only evaluated program costs, without incorporating potential healthcare savings from
prevented events, to provide conservative estimates of cost effectiveness. Worldwide, a 10% reduction in
sodium consumption over 10 years within each country was projected to avert approximately 5.8 million
DALYs/year related to cardiovascular diseases, at a population weighted mean cost of I$1.13 per capita over
the 10 year intervention. Most (96.0%) of the world’s adult population lived in countries in which this
intervention had a cost effectiveness ratio <0.1×GDP per capita, and 99.6% in countries with a cost
effectiveness ratio <1.0×GDP per capita. The intervention is projected to be highly cost effective
worldwide, even without accounting for potential healthcare savings.