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.
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.
When hiring new workers, employers use a wide
variety of different recruiting methods in addition to posting a vacancy
announcement, such as adjusting education, experience or technical
requirements, or offering higher wages. The intensity with which employers
make use of these alternative methods can vary widely depending on a firm’s
performance and with the business cycle. In fact, persistently low
recruiting intensity partly helps to explain the sluggish pace of the growth
of jobs in the US economy following the Great Recession of 2007–2009.
Policymakers rely on entrepreneurs to create
jobs, provide incomes, innovate, pay taxes to support public revenues,
create competition in industries, and much more. Due to its highly
heterogeneous nature, the choice of entrepreneurship measures is critically
important, impacting the diagnosis, analysis, projection, and understanding
of potential and existing policy. Some key aspects to measure include the
how (self-employment, new firm formation),
why (necessity, opportunity), and what (growth). As such, gaining better insight into
the challenges of measuring entrepreneurship is a necessary and productive
investment for policymakers.
In a typical country, one in five people suffers
from a mental illness, the great majority from depression or crippling
anxiety. Mental illness accounts for half of all illness up to age 45 in
rich countries, making it the most prevalent disease among working-age
people; it also accounts for close to half of disability benefits in many
countries. Mentally ill people are less likely to be employed and, if
employed, more likely to be out sick or working below par. If mentally ill
people received treatment so that they had the same employment rate as the
rest of the population, total employment would be 4% higher, adding many
billions to national output.