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.
Border enforcement of immigration laws attempts
to raise the costs of illegal immigration, while interior enforcement also
lowers the benefits. Border and interior enforcement therefore reduce the
net benefits of illegal immigration and should lower the probability that an
individual will decide to migrate. While some empirical studies find that
border and interior enforcement serve as significant deterrents to illegal
immigration, immigration enforcement is costly and carries significant
unintended consequences, such as an increase in fraudulent and falsified
documents and rising border death rates as migrants undertake more dangerous
Studies find that technological change has
contributed to the decline in manufacturing and to persistent unemployment
in many advanced economies. While process innovation can be job-destroying,
product innovation can imply the emergence of new firms, new sectors, and
thus new jobs. But even for process innovation, the final impact on labor
demand is shaped by market mechanisms that can compensate for the direct
job-destroying impact if market and institutional rigidities do not impede
them. Policies should maximize the job-creation effect of product innovation
and minimize the direct labor-saving impact of process innovation.
An increase in the minimum wage in immigrant
destination countries raises the earnings that low-skilled migrants could
expect to attain if they were to migrate. While some studies for the US
indicate that a higher minimum wage induces immigration, contrasting
evidence shows that immigrants are less likely to move into areas with
higher or more frequent increases in the minimum wage. These different
findings seem to reflect different relocation decisions by immigrants who
have lived in the US for several years, who are more likely to move in
response to higher minimum wages, and by new immigrants, who are less likely