Monthly Archives: July 2026

The Hospital That Pays for Itself: Fairy Tale or Future Reality?

Imagine a hospital where patients recover more quickly, staff are happier and more likely to stay, and the building itself helps reduce operating costs. That is the vision behind Fable Hospital—a fictional healthcare facility created to explore a real question: can better hospital design improve care while paying for itself? In a new study published in BMJ Leader, researchers led by Texas A&M University Distinguished Professor Dr. Leonard Berry use this imaginary hospital to demonstrate how evidence-based design can produce measurable financial, clinical and environmental benefits. Although Fable Hospital does not exist, the strategies behind it are grounded in decades of research and real-world experience.

The researchers modelled a 300-bed community hospital, asking what would happen if every aspect of the building—from daylight and airflow to materials and energy systems—was designed to promote healing and efficiency. Their analysis suggests that investing an additional US$25 million to US$30 million, roughly 3% of construction costs, would allow the hospital to recover that expense within its first two years of operation. Beyond that point, the savings would continue to accumulate. “This research shows that designing a better hospital is not a luxury, it’s a smart investment,” Berry said. “When you build with evidence in mind, you improve care, support staff and reduce costs all at the same time.”

The projected savings come from multiple sources. Better indoor air quality, reduced noise and greater access to nature are associated with shorter hospital stays, which alone could save about US$7.25 million annually. The model also estimates yearly savings of roughly US$1 million from fewer medical errors, more than US$1.2 million through improved staff retention, and hundreds of thousands of dollars from lower energy and water consumption. Reduced renovation needs and more durable building materials further cut costs, resulting in projected net financial gains exceeding US$100 million over the hospital’s first decade.

The study reflects a growing movement towards regenerative design, an approach that goes beyond reducing environmental harm by creating hospitals that actively support human and community health. This could include patient rooms with views of nature, accessible healing gardens, healthier building materials and resilient infrastructure capable of withstanding extreme weather. According to Berry, hospitals should be viewed not as isolated buildings but as part of a broader system that influences patient outcomes, employee well-being and the health of surrounding communities.

The latest version of Fable Hospital builds on more than 20 years of research. Earlier editions, published in 2004 and 2012, helped shape the evidence-based design movement in healthcare, with many of their recommendations now incorporated into modern hospitals. Berry notes that while Fable Hospital itself is fictional, the design principles are supported by extensive research and have already proven beneficial in practice. The project was developed with collaborators from Texas A&M University, Rady Children’s Hospital in San Diego and the architecture firm Perkins&Will.

Ultimately, the researchers argue that hospital design should be viewed as a long-term investment rather than an upfront expense. Because hospitals influence healthcare delivery for decades after they are built, thoughtful design can generate lasting benefits for patients, staff and healthcare systems alike. As Berry concludes, the lesson of Fable Hospital is straightforward: a better hospital is not only possible—it is practical, financially sound, and worth the investment.

More information: Ashley Dias et al, Fable Hospital 3.0: the business case for building better healthcare facilities, BMJ Leader. DOI: 10.1136/leader-2025-001522

Journal information: BMJ Leader Provided by Texas A&M University

AI Could Backfire on Employers Seeking Top Talent

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Companies adopting artificial intelligence to speed up recruitment may unintentionally be weakening their ability to compete for top talent, according to a major new study. Researchers from the Royal Docks School of Business and Law found that although AI can significantly improve the speed and efficiency of hiring, relying too heavily on automated systems could make organisations less appealing to highly skilled applicants. The findings highlight a growing challenge for employers seeking to balance technological efficiency with the human experience of recruitment.

The researchers describe this challenge as the “resourcing paradox”, in which the efficiency gained through AI may come at the cost of the human connections needed to attract and retain talented employees. As organisations increasingly use technology to streamline recruitment, the study suggests that removing too much personal interaction can create a hiring process that feels impersonal, distant or unfair. This could discourage strong candidates and ultimately undermine the benefits that AI is intended to provide.

The review analysed 79 previous studies and found that AI is particularly effective at handling routine recruitment tasks. Automated tools can rapidly screen CVs, match candidates with suitable vacancies and arrange interviews, saving recruiters considerable time and resources. However, the research also showed that applicants are more likely to trust AI-supported recruitment when employers clearly explain how the technology is being used and ensure that people remain involved in important hiring decisions.

According to the researchers, AI should therefore be used to support recruiters rather than replace them. Human recruiters remain important for assessing qualities that automated systems may struggle to evaluate, including empathy, future potential and cultural fit. Professor Kirk Chang, a co-author of the study, said organisations that succeed in attracting talent will not necessarily be those using the most AI, but those that effectively combine the technology’s speed with human judgement, transparency and empathy. Recruitment, he stressed, remains fundamentally about people, with technology working best when it improves human decision-making rather than replacing it.

Professor Toyin Adisa, another co-author, noted that recruitment is often an applicant’s first meaningful experience with an organisation. If the hiring process appears impersonal or unfair, employers could lose talented candidates before having the opportunity to speak with them directly. He argued that AI should help companies make better recruitment decisions instead of becoming a barrier between employers and the skilled people they need to remain competitive. The candidate experience, therefore, should remain a central consideration when organisations introduce automated hiring technologies.

The study concludes that employers need a balanced and responsible approach to AI in recruitment. Organisations should clearly communicate how automated systems are used, regularly audit their technologies for potential bias and maintain meaningful human oversight throughout key recruitment decisions. By combining AI’s ability to process information quickly with human understanding and judgement, employers may be better positioned to improve hiring efficiency without sacrificing candidate trust or personal connection. The findings suggest that the future of successful recruitment will depend not on replacing recruiters with technology, but on using AI carefully to strengthen the decisions and relationships that help organisations attract top talent.

More information: Oluwatimilehin Temitope Ologunoye et al, The resourcing paradox: a systematic review of efficiency and effectiveness in AI-powered recruiting, Employee Relations. DOI: 10.1108/ER-05-2025-0337

Journal information: Employee Relations Provided by University of East London

Which Companies Are Most Capable—and What Others Must Prioritise First

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Understanding how companies develop managerial skills, adopt technology and build innovation capacity can help explain why some outperform others and how less advanced firms can improve. Yet, unlike sales or profits, company capabilities are difficult to measure. Previous research has often relied on surveys and interviews, which can be expensive, time-consuming and vulnerable to bias.

Researchers led by Professor Alex Coad of Waseda Business School at Waseda University in Japan have developed and tested a new method for measuring company capabilities and organising them into a hierarchy of basic, intermediate and advanced activities. The low-cost approach uses widely available company data and algorithms from network science. The international research team also included Nandita Mathew of the United Nations University Institute on Comparative Regional Integration Studies and Emanuele Pugliese of the UNU Maastricht Economic and Social Research Institute on Innovation and Technology. Their findings were published online in Industrial and Corporate Change on May 11, 2026.

The researchers analysed annual reports from 44,971 Indian companies between 2000 and 2020 using the PROWESS database developed by the Centre for Monitoring Indian Economy. They assessed company spending across 47 activities, grouped into seven capability categories, and applied a “nestedness” algorithm to determine whether capabilities follow a predictable hierarchy. The algorithm ranked activities according to their complexity and placed companies on a “capabilities ladder”, with capabilities considered more complex when they were found primarily among a small number of highly advanced firms.

The results revealed a clear hierarchy, particularly among companies at the lower and middle levels. Firms at the bottom of the ladder typically possessed basic managerial, production, internet access and communication capabilities. At intermediate levels, companies were more likely to expand into international markets and use new knowledge to support future innovation. At the highest levels, firms engaged in activities such as patenting, mergers and environmental initiatives. However, these advanced capabilities did not follow a strict sequence, suggesting that highly capable companies have greater freedom to develop customised pathways. In contrast, less capable firms generally need to establish foundational capabilities before progressing.

The overall capability hierarchy remained remarkably stable from 2000 to 2020, although some capabilities shifted over time. Information and Communication Technology (ICT) capabilities, initially concentrated among advanced firms, had become widespread and foundational by 2005. Environmental, welfare and amenities capabilities also became somewhat more fundamental by 2015. The researchers further found that company size was positively associated with capability development among smaller firms, but this relationship weakened as companies grew larger. Advanced capabilities were generally linked to higher growth, although firms pursuing highly sophisticated activities relative to their size tended to have lower survival probabilities. Capability profiles also differed across industries, with ICT services and technologically advanced manufacturing firms concentrated near the top of the ladder.

The findings could help companies identify which capabilities they should strengthen before pursuing more complex activities and allow policymakers to design more targeted business support. Coad said the analysis could guide firms towards areas that need upgrading while identifying the foundational capabilities required for advanced activities. Governments could use this information to direct assistance towards companies that are ready to take the next step. For example, export support might be targeted at firms that already possess basic digital capabilities, helping businesses progress through the capabilities ladder more effectively.

More information: Alex Coad et al, Positioning firms along the capabilities ladder, Industrial and Corporate Change. DOI: 10.1093/icc/dtag021

Journal information: Industrial and Corporate Change Provided by Waseda University

Feeling Overqualified Can Change How Employees Perceive Work Demands

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Employers often seek highly qualified candidates, but new research from Penn State suggests that workers who feel overqualified may be more likely to view certain job demands as unfair or inappropriate. The study found that employees who perceived themselves as overqualified were more likely to consider assigned tasks unreasonable or unnecessary. When workers believed tasks were unfair specifically to them, they were also more likely to report poor workplace behaviour and intentions to leave their jobs.

The researchers focused on employees’ perceptions rather than trying to objectively determine whether a task was legitimate. “Perception is what matters,” said lead author Yoko M. Negoro, who earned her doctorate in hospitality management from Penn State. If employees believe they are being asked to perform work beneath their abilities or experience, she explained, it can negatively affect their attitudes and performance. This issue may be particularly relevant in hospitality, where workers often need to be flexible and take on a wide range of duties to meet customer needs.

To examine the relationship between overqualification and perceptions of work tasks, the researchers first recruited 109 participants in the United States and the United Kingdom. Participants imagined working as a hotel desk agent and were assigned either extensive supervisory experience and a master’s degree or limited experience and a high school diploma. They then evaluated tasks such as standing in a hotel lobby when no guests were present or manually transferring reports between software systems. Participants assigned higher qualifications were more likely to consider such duties unworthy of their time.

The researchers then surveyed 225 employees from 46 chain restaurants in Beijing, China, to test the findings in a real-world workplace. Despite cultural differences between Western and East Asian societies, the results were similar: employees who felt overqualified were more likely to perceive tasks as illegitimate. The researchers distinguished between “unreasonable” tasks, which employees believed they personally should not have to perform, and “unnecessary” tasks, which they believed should not be completed at all.

Although overqualified employees were more likely to identify both unreasonable and unnecessary tasks, the two perceptions had different consequences. Unnecessary tasks did not appear to increase negative workplace behaviour. By contrast, unreasonable tasks were associated with stronger intentions to quit and behaviours including tardiness, missed shifts, poor performance and completing personal activities during work hours. The findings suggest that employees may tolerate inefficiency or wasted time more readily than work they perceive as personally unfair or demeaning.

The study also found that respectful management could reduce these negative perceptions. Employees who felt respected by their managers reported 28% fewer unreasonable tasks than those who experienced less respectful treatment. The researchers said managers can help by explaining why tasks are important, recognising employees’ contributions and involving workers in reviews of workplace processes. Although the research focused on hospitality, the authors believe the findings may apply across many industries. Respectful leadership, they concluded, could help employees feel valued, reduce perceptions of unfair work demands and ultimately improve job satisfaction, retention and workplace performance.

More information: Yoko M. Negoro et al, Reasonable for others, but not for me: Perceived overqualification and the perception of illegitimate tasks in the hospitality industry, International Journal of Hospitality Management. DOI: 10.1016/j.ijhm.2026.104756

Journal information: International Journal of Hospitality Management Provided by Penn State

New Research Shows Social Norms Can Boost or Weaken Climate Action

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A new mathematical model suggests that social norms may be as influential as economic forces in determining how societies respond to climate change. The research shows that efforts to reduce greenhouse gas emissions in one part of the world can unexpectedly affect climate action elsewhere. These ripple effects may either strengthen global mitigation efforts or weaken progress, highlighting the complex relationship between human behaviour and climate change.

Developed by researchers at the University of Waterloo and the University of Guelph, the model divides the world into five culturally and economically distinct regions. It examines Asia, Latin America, the Middle East and Africa, OECD countries, and the Reforming Economies of Eastern Europe and the former Soviet Union. By combining existing data on cultural values and behaviour, the model simulates how social norms, perceived climate risks and economic pressures interact to influence mitigation efforts and, ultimately, global warming.

Traditional climate models often treat people primarily as rational economic decision-makers who consistently act in their own financial interests. The new model takes a broader approach by recognising the powerful influence of social expectations and everyday behaviours. Dr Chris Bauch, professor of applied mathematics at the University of Waterloo, explained that social norms can shape choices ranging from eating more beef to using reusable water bottles. When such behaviours become widespread, they can have a significant impact on efforts to reduce emissions and limit climate change.

The researchers found that strategies designed to encourage climate action do not necessarily produce the same results in every region. Greater public discussion about climate change often increases support for mitigation, but it can also intensify opposition in certain social and economic environments. Lead author Amrita Punnavajhala, who recently completed her PhD in applied mathematics at Waterloo, said the findings demonstrate why climate policies must account for regional differences. Rather than relying on a universal solution, effective strategies may need to reflect each region’s distinctive cultural, social and economic circumstances.

The model also reveals how stronger climate action in one region can create unintended consequences elsewhere. For example, if Asia increases its mitigation efforts, the resulting slowdown in global warming could reduce the sense of urgency in OECD countries such as Canada and the United States. According to Bauch, a lower perception of immediate climate risk could weaken social pressure for further action in those countries. Over time, this response could undermine some of the benefits created by stronger mitigation efforts in other parts of the world.

The findings highlight the constant feedback loops connecting climate change, social norms and human behaviour. Dr Madhur Anand, professor of environmental science at the University of Guelph and an adjunct professor in Waterloo’s Department of Applied Mathematics, said understanding these relationships will be essential for reducing emissions and creating a more sustainable future. The researchers suggest that climate strategies should consider not only economic incentives and environmental risks, but also how social attitudes spread within and between regions. Recognising these complex interactions could help policymakers develop more effective and locally appropriate approaches to global climate action.

More information: Amrita Punnavajhala et al, Implications of regional variations in climate change vulnerability and mitigation behaviour for social-climate dynamics, Nature Communications. DOI: 10.1038/s41467-026-73874-8

Journal information: Nature Communications Provided by University of Waterloo

Robot Use Strengthens SME Productivity but Has Little Impact on Exports

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Spanish small and medium-sized manufacturing enterprises (SMEs) that adopt robots tend to become more productive, with the strongest gains seen among smaller and less innovative firms. However, automation alone does not appear to increase exports. Instead, international activity is closely associated with the presence of specialised industrial clusters and related businesses within a region, according to a pioneering study by researchers at the Universitat Oberta de Catalunya (UOC).

The research, published in the Journal of the Knowledge Economy, is among the first to examine how robot adoption affects manufacturing SMEs with between 10 and 200 employees. “The smaller the firm, the greater the increase in productivity when robots are introduced,” said study co-author Carles Méndez of the Interdisciplinary Research Group on ICT (i2TIC-IA Lab). In larger firms, productivity gains were less significant. The researchers also found that robots had a positive effect across different businesses, but their impact was smaller in companies that were already highly innovative.

Researchers analysed data from nearly 5,000 Spanish manufacturing firms between 1990 and 2016, drawing on an extensive industrial database compiled by the SEPI Foundation. The focus on SMEs is particularly significant because these businesses generate around two-thirds of Spain’s added value and employ more than half of the country’s active population. According to UOC-DIGIT director Joan Torrent, industrial companies can also provide higher-quality and better-paid jobs than sectors such as tourism and services, highlighting manufacturing’s potential as a source of long-term employment.

Despite the productivity benefits of robots, the researchers found no direct relationship between automation and increased exports. Regional conditions proved far more important. SMEs located near companies operating in the same or related industries were more likely to participate in international markets. Méndez said specialised industrial environments can promote the exchange of knowledge, skilled workers and technical expertise, creating “localisation economies” that strengthen the export capacity of smaller businesses.

A separate UOC-led study, also published in the Journal of the Knowledge Economy, examined the wider digital transformation of SMEs using data from the same period. The findings challenge the assumption that adopting digital technologies automatically produces lasting productivity gains. Instead, digital tools appear to selectively support productivity and internationalisation, particularly among highly digitalised firms that are already active in importing and exporting. Torrent warned that it is a mistake to expect digitalisation to produce uniform results, as different technologies involve distinct methods and deliver different benefits.

The second study also reinforced the advantages of robotic automation while emphasising that technology must be supported by organisational change and skilled employees. Well-trained personnel, flexible management structures and less bureaucratic organisations are essential if businesses are to gain the full benefits of new technologies, the researchers said. Digital networks and platforms can also encourage greater collaboration between SMEs, an area where Spanish and Catalan businesses have traditionally lagged. Torrent argued that encouraging companies to work together could help address a longstanding weakness in Spain’s business system and improve both productivity and international competitiveness.

More information: Sebastiano Cattaruzzo et al, Robots, Firms, and Regions: Explaining Spanish Manufacturing Firms’ Productivity and Exports, Journal of the Knowledge Economy. DOI: 10.1007/s13132-026-03261-7

Journal information: Journal of the Knowledge Economy Provided by Universitat Oberta de Catalunya (UOC)

Honesty May Outperform Incentives in Organisations, New Research Suggests

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For decades, economic theory has often assumed that people in organisations will only act in the desired way when motivated by incentives such as performance-based pay. However, new research challenges this long-standing view, suggesting that honesty, trust and professional integrity may sometimes be more efficient than financial rewards.

A paper published in the Journal of Business Ethics, co-authored by University of Technology Sydney (UTS) researchers Associate Professor Gordon Menzies and Professor Isa Hafalir, revisits one of economics’ most influential theories about workplace incentives. By re-examining the classic principal–agent model, the researchers found that when employees have a genuine commitment to honesty, fixed salaries can outperform incentive-based contracts. Excessive reliance on financial incentives may also weaken trust over time, with implications for debates surrounding performance pay, executive compensation, professional standards and organisational culture.

The research emerged from a public lecture Menzies delivered at Oxford on lessons from the Global Financial Crisis and the ways economic reasoning can sometimes be inappropriately applied to moral decisions. This led him to question the assumptions standard economic models make about truth-telling and whether they accurately reflect how people behave in organisations. The principal–agent model, which has helped support the use of large bonus contracts since the 1980s, effectively assumes that individuals may not act honestly unless incentives encourage them to do so.

Working with Hafalir, Menzies developed a formal model that accounts for a more complex view of human behaviour. At the same time, Professor Tom Simpson, a moral philosophy scholar at Oxford, explored the ethical implications. “In many business situations, people are neither perfectly self-interested nor perfectly trustworthy. Our model captures that more realistic middle ground,” Menzies said. The findings suggest that organisations may need to recognise honesty as an economically valuable behaviour rather than assuming employees respond primarily to financial rewards.

The researchers also found that incentive contracts can unintentionally communicate distrust. When an organisation introduces performance-based rewards to ensure particular behaviour, employees may interpret the move as a sign that management does not trust them to act honestly. “That can discourage honesty, reduce trustworthiness and create a downward spiral where even more incentives are needed,” Menzies said. This cycle could ultimately make organisations increasingly dependent on costly incentive systems while weakening the trust those systems were intended to replace.

The findings may help explain why fixed salaries remain common in professions such as medicine, law and other advisory fields, where judgement, responsibility and ethical duties are central to the work. “Doctors, lawyers and other professionals are not just service providers responding to price signals. Their work depends on duties of loyalty, care and truthfulness,” Menzies said. According to the researchers, the continued use of salaried professional roles reflects the economic value of trust and moral responsibility. The study suggests that, in some organisations, cultivating honesty and professional integrity may be not only an ethical priority but also a more efficient economic strategy than relying heavily on incentives.

More information: Gordon Menzies et al, The Efficiency of Moral Character: Modelling Principal–Agent Relations and Caring Agents Within the Fiduciary, Journal of Business Ethics. DOI: 10.1007/s10551-026-06380-y

Journal information: Journal of Business Ethics Provided by University of Technology Sydney

Supporting Certified Repairs Keeps Customers and Products in Use

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Certifying third-party repair services can help companies retain customers by signalling that broken products still have value and “unused utility”, according to research led by Penn State. The researchers were inspired by the “fix it” mindset of their parents and grandparents and concerned by the growth of disposable consumption, in which consumers increasingly replace broken goods rather than repair them. They investigated whether repair services could encourage consumers to extend the life of durable products without reducing brand sales or requiring companies to operate costly in-house repair programmes.

The study found that brand-certified third-party repair services benefited companies, repair providers and consumers. Certification signalled that broken products still had useful life remaining, increased repair rates and reduced the likelihood that customers would switch brands. The findings, published in the Journal of Consumer Research, suggest that companies can gain many of the benefits of an in-house repair service by approving independent providers. Study co-author Karen Winterich, distinguished professor of marketing at Penn State’s Smeal College of Business, said certification can also help brands appear more sustainable and keep customers satisfied with their purchases.

Across six experiments, the researchers examined how certification influenced repair decisions. In one study involving 2,056 American consumers, participants saw identical social media advertisements for laptop repair services and were directed to landing pages featuring a major laptop brand’s logo. Only one page stated that technicians were brand-certified. Consumers were nearly twice as likely to initiate a repair with the certified service. A similar experiment involving another repair provider and laptop brand found that certification increased repair leads by more than 700%.

Another experiment asked 501 US participants to imagine that headphones from a fictional brand had broken after two years. Participants viewed advertisements for either a non-certified third-party repair service, a brand-certified repair service or repairs offered directly by the manufacturer. Those shown certified or brand-operated repair services were more likely to repair their headphones, with no significant difference between the two options. Among participants who preferred replacement, 76% said they would switch to another brand, highlighting the potential risk to companies that fail to support repairs.

Further experiments showed that certification was particularly influential for consumers with limited product expertise. These consumers relied on brand approval as a signal that a broken product retained value and was worth repairing. Certification also had a greater effect on products with low sentimental value. By contrast, consumers were more likely to repair emotionally significant possessions, such as wedding gifts, regardless of who provided the repair service. A final experiment involving nearly 400 video game console owners found that certification was less effective when an upgraded product was about to be released, as consumers were more likely to buy the new version.

Overall, the researchers described certified third-party repairs as a “win-win-win” for brands, consumers and independent repair providers. Companies can retain customers and support sustainability without bearing the full cost of an internal repair operation. In contrast, repair businesses gain customers and consumers are encouraged to keep useful products for longer. “Consumers don’t want to be wasteful, but replacing is massively wasteful in many cases,” Winterich said. The findings suggest that brand certification can reassure consumers that broken products still have value and are worth fixing.

More information: Nathan Allred et al, Repair Service Signals: How Brand Repair Services Signal Unused Utility and Increase Product Repair, Journal of Consumer Research. DOI: 10.1093/jcr/ucag009

Journal information: Journal of Consumer Research Provided by Penn State

Bumpy Road to Specialist Physician Jobs in Canada

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Despite a continued need for specialist physicians in Canada, securing a job is not always straightforward, especially in resource-intensive fields that depend on hospital infrastructure rather than private office or clinic practice. These include critical care and some surgical specialties, where employment may depend on funding, operating room access, institutional priorities, and available full-time positions. New research published in CMAJ highlights how difficult and uncertain the hiring process can be for physicians seeking these roles.

“This study sheds light on the complex and often opaque nature of the hiring process for physicians applying to resource-intensive jobs in Canada,” write Dr Nada Gawad, a general surgeon at The Ottawa Hospital and assistant professor at the University of Ottawa, and her coauthors. Specialists at the University of Ottawa and the University of Alberta conducted the study.

Researchers interviewed trainees, recent graduates, programme directors, and division chiefs across Canada between 2021 and 2022. Their goal was to understand better how hiring decisions are made in resource-intensive specialties and to identify ways to help physicians navigate the employment process. Participants described several barriers, including limited full-time job availability, poor access to job listings, family and spousal employment considerations, and shortages of resources such as funding and operating room time.

The study identified five major themes: the hiring process is difficult to navigate and poorly defined; decisions often emphasise a candidate’s perceived “fit” and lack transparency; bias and inequity can occur; active mentorship and networking influence success; and perspectives differ among trainees, recent graduates, programme directors, and division chiefs.

The authors noted that proactive, well-networked candidates were more likely to succeed, but warned that the emphasis on “fit” may create problems. Because fit is vague and subjective, it can undermine equity, diversity, and inclusion efforts by disadvantaging candidates from underrepresented backgrounds, reinforcing homogeneity, and limiting access to different perspectives and skills. Some participants also said job postings were sometimes treated as formalities, with preferred candidates already identified.

The authors say improvements are needed at the individual, programme, institutional, and national levels. They recommend that trainees clarify career goals early, build networks, contact potential employers, and seek mentors. Training programmes should guide hiring and applications, while institutions should post opportunities earlier and clearly describe the candidates they are seeking. National resident associations and specialty societies could also support transparency by hosting hiring information sessions, creating best-practice guidelines, and developing centralised job repositories.

More information: Kameela Miriam Alibhai et al, The path to securing a resource-intensive physician job in Canada: lived experiences of decision-makers and trainees, Canadian Medical Association Journal. DOI: 10.1503/cmaj.251882

Rethinking Financial Education for the Digital Age

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A large study led by Hiroshima University in collaboration with Rakuten Securities suggests that financial education may need to evolve as financial services become increasingly digital. Researchers found that practical digital skills, positive financial attitudes and the ability to protect oneself from online financial risks were more consistently associated with lower anxiety about old age than traditional financial knowledge alone.

Financial education has traditionally focused on core concepts such as interest rates, inflation and risk diversification, often known as the “Big Three” of financial literacy. While this knowledge remains important and has been linked to better retirement planning and reduced anxiety about later life, researchers questioned whether it fully reflects the capabilities people need in today’s digital financial environment. The findings were published in the International Journal of Financial Studies on June 1, 2026.

The researchers analysed data from 94,695 digitally active Japanese retail investors aged 40 to 64, examining the relationship between different components of digital financial literacy and self-reported anxiety about life after age 65. The data came from the 2025 “Survey on Life and Money,” an online panel survey jointly administered by Rakuten Securities and Yoshihiko Kadoya’s laboratory at Hiroshima University. “We examined whether the traditional ‘Big Three’ financial knowledge component shows the same association with old-age anxiety as more practical and protective components of digital financial literacy,” said Kadoya, a professor at Hiroshima University’s Graduate School of Humanities and Social Sciences.

Overall, higher digital financial literacy was associated with lower old-age anxiety. However, when the researchers divided digital financial literacy into eight components, significant differences emerged. Traditional knowledge of interest rates, inflation and risk diversification did not show the same robust association with reduced anxiety once other digital financial competencies were considered. In contrast, practical know-how, positive financial attitudes and self-protection were more consistently linked to lower anxiety. The researchers stress that this does not make traditional financial knowledge unimportant, but suggests knowledge alone may be an incomplete measure of financial capability.

The team interprets the findings through an “awareness–actionability” perspective. Financial knowledge can help people recognise retirement risks, including inflation, market volatility and longevity risk. Still, awareness may not ease anxiety if individuals lack the skills to act on that information. Practical digital abilities and self-protection may be particularly important for middle-aged and older investors approaching retirement. “Traditional financial literacy is like knowing the rules of the road, while digital financial literacy also requires being able to drive safely in real traffic,” Kadoya explained. The findings suggest financial education should help people understand concepts, use digital services effectively, make informed decisions and protect themselves from fraud and other online risks.

The authors caution that the study identifies associations rather than causal effects. Its cross-sectional data came from digitally active securities account holders rather than the general population, and old-age anxiety was measured using a single survey question. Further longitudinal and experimental research is needed to determine whether strengthening practical digital financial skills can directly reduce anxiety over time. Nevertheless, the study indicates that financial education and customer support may need to move beyond simply providing information. “Rather than replacing traditional financial education, we hope this research will help expand it—from simply knowing financial concepts to being able to use, judge, and protect oneself in digital financial environments,” Kadoya concluded.

More information: Jargalmaa Amarsanaa et al, Knowledge, Actionable Digital Skills, and Old-Age Anxiety: Evidence from Digital Financial Literacy Components Among Japanese Retail Investors, International Journal of Financial Studies. DOI: 10.3390/ijfs14060139

Journal information: International Journal of Financial Studies Provided by Hiroshima University

The Road to Fair Climate Action: Insights From 88 Countries and 5 Billion People

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A major new study from the Potsdam Institute for Climate Impact Research (PIK) offers an unprecedented look at how the carbon intensity of household consumption varies across 88 countries representing about 5 billion people. The findings could help governments design climate policies that are both effective and socially fair, particularly as carbon pricing and the removal of fossil fuel subsidies can increase household costs. Surprisingly, the researchers found that the greatest differences in climate-policy burdens are often not between rich and poor households, but among households within the same income groups. Factors such as vehicle ownership, location and energy use can play a decisive role. The research, published in the Journal of Environmental Economics and Management, is accompanied by an interactive online carbon price calculator.

“Uncertainty around the social impacts of climate policy is a problem for many governments worldwide,” said Leonard Missbach, a PIK researcher and lead author of the study. Governments often lack detailed information about how the costs of climate measures are distributed across their populations and how vulnerable households can be compensated without undermining public support. To address this gap, the researchers combined a vast international dataset with machine learning. Their analysis draws on national household surveys covering 1.7 million representative households, which anonymously reported their spending patterns. Together, the surveys reflect living conditions across countries containing most of the world’s population.

The researchers combined household expenditure data with estimates of the carbon emissions associated with individual purchases. These included direct emissions from products such as petrol and heating oil, as well as indirect emissions embedded in other goods and services. This produced an unusually detailed collection of individual household “carbon footprints”. The team then examined how climate policies that raise the cost of carbon could affect households relative to their incomes. Large differences in these additional burdens within a country can create more cases of financial hardship and make it considerably more difficult for governments to design compensation measures that reach the people who need them most.

One of the study’s central findings challenges traditional approaches to social compensation. Across all 88 countries, differences in the impact of climate policy between rich and poor households were significantly smaller than differences among households within individual income groups. Policies focused mainly on income, such as graduated cash transfers or tax rebates, may therefore fail to protect many vulnerable households. In some cases, the researchers warn, well-intentioned compensation schemes could even increase inequality in how climate-policy costs are distributed. The findings suggest that governments may need to look beyond household income when deciding who should receive support.

Using machine learning, the researchers identified several characteristics that help explain why households with similar incomes can face very different climate-policy burdens. Car and motorbike ownership emerged as important factors, alongside geographical differences such as whether households are located in urban or rural areas. Energy consumption also played a major role, including the fuels used for cooking, lighting and heating, access to electricity grids and ownership of large household appliances. However, the importance of these factors varied widely between countries. Motorcycle ownership was particularly relevant in Niger, Burkina Faso and Togo, while the urban–rural divide was more important in Latvia, Sweden and the Czech Republic. Cooking fuels were especially significant in Nicaragua and India, whereas household appliances helped explain differences in Switzerland and the Philippines.

To make these complex global patterns easier to understand, the research team grouped countries into ten clusters based on similarities in the distribution of household carbon intensity. The approach could encourage governments facing comparable challenges to exchange ideas and learn from one another, although the researchers deliberately stopped short of recommending specific policies for individual countries. PIK researcher and study co-author Jan Steckel said the findings are intended to guide policymakers and help non-governmental organisations better understand the social effects of climate measures. The researchers also note that carbon pricing and the removal of fossil fuel subsidies generate government revenue that can be redirected towards compensation, potentially making social equity easier to achieve than under regulations, bans or limits that do not create additional public funds.

More information: Leonard Missbach et al, The heterogeneous effects of climate policy on households: Evidence from 88 countries, Journal of Environmental Economics and Management. DOI: 10.1016/j.jeem.2026.103382

Journal information: Journal of Environmental Economics and Management Provided by Potsdam Institute for Climate Impact Research (PIK)

New Ways to Reduce Energy Consumption in Data Centers

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The rapid expansion of data centres across the United States, driven largely by the growing demand for artificial intelligence, has raised concerns about electricity consumption, grid reliability, and environmental impacts. A new study from the Massachusetts Institute of Technology (MIT) suggests that these effects will depend heavily on how and when data centres consume electricity. Rather than simply increasing pressure on the grid, facilities that shift a substantial share of their power use away from peak-demand periods could reduce overall electricity costs while helping utilities manage demand more efficiently. However, the environmental outcomes vary by region, with some areas benefiting from greater renewable energy use while others could see increased reliance on fossil fuels. “The key with data centers is: How can we add them to the network without adding a lot to our peak usage?” says Christopher Knittel, an economist at MIT Sloan School of Management and co-author of the study.

Published in iScience, the study, titled Flexible Data Centers Reduce Power System Costs But Can Increase Emissions, was conducted by Juan Ramon L. Senga, Shen Wang, and Knittel from MIT’s Center for Energy and Environmental Policy Research. The researchers used the Gen X model of the U.S. electricity grid to simulate a full year of energy demand under scenarios involving rapid data centre expansion. They focused on Texas, the Mid-Atlantic region, and the Western Interconnect, which together are expected to host about 82 percent of U.S. data centres by 2030. Their analysis compared traditional, inflexible electricity use with scenarios in which data centres shifted at least 20 percent—and in some cases as much as half—of their electricity demand to off-peak hours.

The modelling found that flexible electricity consumption could generate meaningful savings for the power system. Compared with inflexible demand, average electricity costs could fall by as much as 5 percent in Texas, 4 percent in the Mid-Atlantic region, and 2 percent across the western United States. Much of the savings comes from reducing demand during the most expensive periods of the day while making better use of existing infrastructure. Since a large share of grid costs is fixed, spreading those costs across greater electricity consumption can lower average prices if peak demand does not increase proportionally. Most data centres already operate below full capacity, allowing certain computing tasks to be shifted from morning and evening peaks to midday hours when electricity demand is lower and solar power generation is strongest.

The researchers also found that different types of AI workloads offer varying degrees of flexibility. Data centres devoted to training AI models typically run continuously and can more easily reschedule computing tasks without affecting performance. By contrast, facilities handling AI inference, such as responding to online search queries or other real-time user requests, must match consumer demand and therefore have less flexibility. Even so, Knittel notes that modest improvements in load shifting could have substantial financial benefits. Savings of just a few percentage points may appear small, but when applied to a power system worth hundreds of billions of dollars annually, they represent significant economic gains.

The environmental picture proved more complex. Without changes in operating patterns, projected data centre growth by 2030 would substantially increase carbon dioxide emissions, with the study estimating increases of 58 percent in Texas, 20 percent in the Mid-Atlantic region, and 24 percent in the western United States compared with scenarios without additional data centres. However, the impact of flexible electricity use depended on regional energy resources. In Texas, where wind power supplies more than half of grid electricity, flexible demand could encourage greater use of renewable energy and reduce emissions by as much as 40 percent. In the Mid-Atlantic region, however, shifting electricity use to periods when solar and wind generation declines could keep coal-fired power plants operating longer, leading to a modest increase in overall emissions despite additional renewable energy generation.

The findings suggest that the benefits of expanding data centres will depend not only on technological advances but also on public policy. Knittel argues that companies may be reluctant to voluntarily adopt flexible operating schedules unless competitors face the same requirements. One possible solution would be to offer faster grid connections to data centres that agree to reduce or shift electricity consumption during periods of peak demand, an approach known as “connect and manage.” Such policies could improve grid stability while encouraging investment in cleaner energy sources where they are most effective. As AI continues to fuel demand for new computing infrastructure, the researchers conclude that carefully designed policies will play a crucial role in determining whether future data centres become a burden on the grid or part of a more efficient and sustainable energy system.

More information: Juan Ramon L. Senga et al, Flexible data centers reduce power system costs but can increase emissions, iScience. DOI: 10.1016/j.isci.2026.116497

Journal information: iScience Provided by Massachusetts Institute of Technology