Evidence-based policy making

IZA World of Labor is an online platform that provides policy analysts, journalists, academics and society generally with relevant and concise information on labor market issues. Based on the latest research, it provides current thinking on labor markets worldwide in a clear and accessible style. IZA World of Labor aims to support evidence-based policy making and increase awareness of labor market issues, including current concerns like the impact of Covid-19, and longer-term problems like inequality.

 

Featured Article

Do case workers help the unemployed?
Evidence for making a cheap and effective twist to labor market policies for unemployed workers

Organisation for Economic Co-operation and Development countries spend, on average, an equivalent of 0.4% of their gross domestic product on active and passive labor market policies. This is a non-negligible sum, especially in times of strained government budgets. Meetings with case workers—who can provide advice and information on what jobs to look for, and how to search, and give moral support, as well as monitor search intensity—are a simple and effective option for policymakers to help the unemployed find work.

  • Intersectionality and labor market outcomes

    Putting the lens on the interaction of gender, race, and other social identities since this creates unique experiences of advantage and disadvantage

    The privilege or disadvantage of individuals is not determined by a single social identity. The sexual division of labor affects women’s and men’s labor supply, the industries and occupations they enter, their earnings and progress. However, being a racial/ethnic or sexual minority (along with class and age) also influences job opportunities. Evidence shows that minority women’s experiences are unique and jointly determined by their gender and minority status, although the gender effect appears to precede that of minority.

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  • The merits of teacher assessment versus external exams to measure student achievement

    Are teachers best placed to assess their students or are external exams more effective?

    There is little to no consensus in the academic literature over whether centralised, standardised exams are better for students than teacher assessments. While a growing body of evidence from economics highlights bias in teacher assessments, educationalists and psychologists point to the harm caused by high-stakes exam-related stress and argue that exams and teacher assessments generally agree very closely. This lack of academic consensus is reflected in policy: a wide variety of assessment methods are used across (and even within) countries. Policymakers should be aware of the potential for inequalities in non-blind assessments and consider carefully the consequences of relying on a single method of assessment.
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  • Female labor force participation and development Updated

    Improving outcomes for women takes more than raising labor force participation—good jobs are important too

    Sher Verick , May 2025
    The relationship between female labor force participation and economic development is far more complex than often portrayed in both the academic literature and policy debates. Due to various economic and social factors, such as the pattern of growth, education attainment, and social norms, trends in female labor force participation do not conform consistently with the notion of a U-shaped relationship with gross domestic produc (GDP). Despite the initial impact, Covid-19 did not have a lasting negative effect, on average, on women’s participation. At the same time, some countries have made significant progress in increasing participation rates for women, including those who have started from a lower level.
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  • Gender quotas on corporate boards of directors Updated

    Gender quotas for women on boards of directors improve female share on boards, but firm performance effects are mixed, and spillover effects are positive but small.

    Arguments for increasing gender diversity on corporate boards of directors by gender quotas range from ensuring equal opportunity to improving firm performance. The introduction of gender quotas in a number of countries, mainly in Europe, has increased female representation on boards. Current research does not unambiguously justify gender quotas on grounds of economic efficiency. In many countries, the number of women in top executive positions is limited, and it is not clear from the evidence that quotas lead to a larger pool of female top executives, who, in turn, are the main pipeline for boards of directors. Thus, other supplementary policies may be necessary if politicians want to increase the number of women in senior management positions.

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