1. Introduction
  2. Subject areas

Evidence-based policy making

IZA World of Labor provides decision-makers, policy advisors, journalists and scholars with relevant and succinct information based on sound empirical evidence to inform policy and best-practice technique.

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  • Program evaluation

    Program evaluation

    Program evaluation provides an overview of the effectiveness of a variety of policies that have been tested in diverse settings across various countries. The knowledge provided suggests whether or not the individual and the economy fair better without the measures studied.

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  • Behavioral and personnel economics

    Behavioral and personnel economics

    Behavioral economics analyzes the emotional and cognitive factors that influence the decisions of actors. Personnel economics analyzes the internal organizational strategy of the firm and the human resource management practices chosen to pursue that strategy.

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  • Migration and ethnicity

    Migration and ethnicity

    Mobility is important for the functioning of markets and society. Migration deals with issues of national and international mobility, such as demand and supply, and what migration means for natives and migrants and for sending and receiving countries.

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  • Labor markets and institutions

    Labor markets and institutions

    Institutions have important consequences for the performance of households, companies, governments and entire markets; they determine the welfare of nations. Contributions explore the underlying mechanisms and the politico-economic determinants of such structures.

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  • Transition and emerging economies

    Transition and emerging economies

    The transformation of economic systems from plan to market in transition and emerging economies has significant consequences not only for labor markets in those countries. Their lessons can also guide the development of institutions and labor reform policies in other countries.

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  • Development

    Development

    Low-income countries differ from higher-income countries in that they have large informal sectors, greater prevalence of self-employment and subsistence agriculture, low female labor participation rates and poor labor market conditions. As labor is most often the only asset of someone in poverty, policies that are not associated with job creation may fail to reduce poverty. Hence, development deals with the potential of labor economics to address those challenges.

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  • Environment

    Environment

    Optimal environmental policy aims at equalizing benefits and costs of improving environmental quality. While the benefits generally accrue in the form of increased health, worker productivity, quality of life, and amenity values, the costs of environmental regulations are mostly borne through impacts on industrial activity and labor market outcomes. Successful policy development requires information on the connection between environmental regulations, labor markets, and industrial activity.

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  • Education and human capital

    Education and human capital

    Education shows great resilience to shocks—labor demand for highly skilled workers has remained high in all kinds of economic conditions. Public policy for education and human capital include increasing the economic and social returns on education, fostering greater educational attainment, encouraging social and economic mobility, and providing vocational education, training, and lifelong learning.

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  • Demography, family, and gender

    Demography, family, and gender

    Population characteristics strongly predict labor market success. One of the biggest economic changes has been the rise of women in the labor market. The upcoming demographic imbalances suggest substantial adjustment processes on labor markets around the globe. Empirical evidence relating social, cultural, and biological processes to worker well-being is also provided.

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  • Data and methods

    Data and methods

    Data are the foundation for evidence-based research. Therefore, the value of different types of data collection is made transparent. Important statistical and econometric methods are explained that provide instruments to condense information and to identify and quantify correlation or causality. Data sources used in our articles are cited according to the IZA World of Labor data citation convention.

    The list of data sources can be found here.

    The list of methods can be found here.

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  1. Featured article
  2. Latest articles

Featured article

Slavery, racial inequality, and education

Historical slavery may be a driver of human capital and its unequal racial distribution, with implications for education and income inequalities

Income inequality is a critical issue in both political and public debate. Educational attainment is a key causal factor of continuing inequality, since it influences human capital accumulation and, as a consequence, the unequal distribution of earnings. Educational inequality displays a racial dimension that is particularly persistent and difficult to eradicate through policy measures. Its roots lie in the colonial institution of slave labor, which was widespread in the US and Latin America up until the 19th century. However, the influence of slavery differs significantly across countries and between regions.

10.15185/izawol.122 122

Childcare expansion and mothers’ employment in post-socialist countries

A range of other policies and changes are needed for childcare expansion to increase mothers’ labor supply

In 2002, the EU set targets for expanding childcare coverage, but most of the post-socialist countries are behind schedule. While childcare expansion places a heavy financial burden on governments, low participation in the labor force by mothers, especially those with children under the age of three, implies a high potential impact. However, the effectiveness of childcare expansion may be limited by some common characteristics of these countries: family policies that do not support women’s labor market re-entry, few flexible work opportunities, and cultural norms about family and gender roles shaped by the institutional and economic legacy of socialism.

10.15185/izawol.319 319

What effect do vocational training vouchers have on the unemployed?

Vouchers can create a market for training but may lengthen participants’ unemployment duration

The objective of providing vocational training for the unemployed is to increase their chances of re-employment and human capital accumulation. In comparison to mandatory course assignment by case workers, the awarding of vouchers increases recipients’ freedom to choose between different courses and makes non-redemption a possibility. In addition, vouchers may introduce market mechanisms between training providers. However, empirical evidence suggests that voucher allocation mechanisms prolong the unemployment duration of training participants. But, after an initial period of deterioration, better long-term employment opportunities are possible.

10.15185/izawol.316 316