ESRC Institute for the Microeconomic Analysis of Public Policy

The core aims and objectives of the ESRC Institute at IFS are to conduct internationally leading research in microeconomic policy analysis; to use the rigorous insights generated to impact public policy in the UK and internationally; to inform and improve the quality of public debate; and to upskill a new generation of research economists in such work. To consolidate our position as a leading national resource, we will continue to innovate in each dimension - expanding our research agenda into new areas of pressing importance; deepening and widening stakeholder connections to ensure our research has policy impact; developing new data and methods and making these available to the research community; expanding international collaborations with governments, NGOs and like-minded research organisations; and building additional training for early-career researchers.

Our research agenda will address enduring and complex challenges of key strategic importance to the economy, organised into five themes: (i) human capital:? schools and pre-schools, training, further and higher education, the link between education, work and crime, and the role of families and caregiving; (ii) labour markets: encompassing the returns to education and skills, skills mismatch, career progression within and across firms, and drivers of the productivity stagnation; (iii) tax and benefits: research on low-income households, the design of tax and welfare systems, and the role of the tax system for redistribution, entrepreneurship, investment and innovation; (iv) consumption, wealth and health:? spending patterns, consumption and the ability to insure risks, retirement savings, pensions, housing, wealth accumulation, causes and consequences of poor health, nutrition and the environment; (v) public finances:?including public spending and its distributional effects, organisation and productivity of the public sector workforce, the design of health and justice systems and their links to economic outcomes, and devolved fiscal frameworks.

These themes contain important cross-cutting issues. First, inequalities - spatial disparities, horizontal inequities between groups, relational inequalities between employers and employees, and intergenerational inequalities. Second, the link between intergenerational mobility and human capital, labour market opportunities, housing markets and wealth accumulation. Third, the organization of the state, and the implementation and evaluation of public policy. Finally, the role of firms, and how they respond to policy, in determining individual well-being and aggregate prosperity.

Our commitment to upskill a new generation of economic researchers who can contribute to world-leading research and policy debates remains central to the Institute. Arguably that has been our most important route to impact. We will continue offering postdoctoral, PhD and enrichment programmes, and will further expand the infrastructure built over decades to provide a breadth of tailored training to earlier-career economists.

The ESRC Institute lies at the heart of IFS and is structured to maximise the pathways between research and policy. Through this close connection we remain committed to be of critical value to policy makers, civil servants, the media, those in the private sector and other stakeholders. Through multiple forms of engagement in-person and through social media channels, we aim to continue helping to inform public debate on both the critical economic issues of the day, and long-term economic challenges.