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.
The recent EU enlargements into Central and
Eastern Europe and increased labor mobility within the Union provide a
unique opportunity to evaluate the labor market effects of emigration.
Outmigration has contributed to higher wages for stayers, as well as to
lower unemployment in the source country. However, emigration has also
exacerbated skills shortages in some sectors, as well as mismatches between
skills and jobs.
Before the great recession of 2008–2009, the
“flexicurity” model (with flexibility for firms to adjust their labor force
along with income security for workers through the social safety net)
attracted attention for its ability to deliver low unemployment. But how did
it fare during the recession, especially in Denmark, which has been
highlighted as having a well-functioning flexicurity model? Flexible hiring
and firing rules are expected to lead to large adjustments in employment in
a recession. Did the high rate of job turnover continue or did long-term
unemployment rise? And did the social safety net become overburdened?
The impact of offshoring on domestic jobs is
more complicated than it first appears. In the standard narrative,
offshoring production is thought to harm domestic workers by providing cheap
alternative sources of labor. However, while offshoring may directly
displace domestic workers, the resulting foreign market access and lower
production costs allow domestic firms to increase efficiency, expand
production, and thus create new jobs for domestic workers. These new jobs
often involve more complex tasks, as revealed by the positive relation
between the share of offshored jobs and the average cognitive and
interactive task content of domestic jobs.