IZA World of Labor provides decision-makers with relevant and succinct information based on sound empirical evidence to help in formulating good policies and best practices. It provides expert know-how in an innovative structure, and a clear and accessible style.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
In common anti-immigrant rhetoric, concerns are
raised that immigrants bring diseases with them to the host country that
threaten the health of the resident population. In reality, extensive
empirical research over several decades and across multiple regions and host
countries has documented that when immigrants arrive in the host country
they are healthier than native residents, a phenomenon termed the “healthy
immigrant effect.” This initial advantage deteriorates with time spent in
the host country, however, and immigrants’ health status converges toward
(or below) that of native residents.
Unemployment insurance can be an efficient tool
to provide protection for workers against unemployment and foster formal job
creation in developing countries. How much workers value this protection and
to what extent it allows a more efficient job search are two key parameters
that determine its effectiveness. However, evidence shows that important
challenges remain in the introduction and expansion of unemployment
insurance in developing countries. These challenges range from achieving
coverage in countries with high informality, financing the scheme without
further distorting the labor market, and ensuring progressive
Social networks, or “job-referral” networks, can help make
labor markets become more efficient. Outside the firm, they help workers obtain employment
after displacement and secure higher-paying jobs. They can also match highly-skilled workers
to more productive employment. Inside the firm, referrals facilitate employment relationships
that are more stable, productive, and profitable. In aggregate, referral networks help “grease
the wheels” of a labor market that can be beset by a range of information problems. However,
such networks can also be segmented along racial, ethnic, and socio-economic lines, which
brings into question the effect they may have on inequality between and within different
groups of workers.