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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.

View our content on Covid-19—Pandemics and the labor market 

featured article

Does vocational training help young people find a (good) job? 

Systems combining structured learning on the job with classroom training can ease youth unemployment

Werner Eichhorst

Youth unemployment has increased in many industrialized countries following the recent global recession. However, this reflects not only the cyclical shock, but also the crucial role of institutions in structuring the transition from school to work. Vocational training, in particular in a dual form combining vocational schooling and structured learning on-the-job, is often considered to be one of the most important policy solutions in combating youth unemployment. The evidence available supports this perception, but the institutional requirements of a successful training system also have to be taken into account from a policy perspective.

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latest articles

  • Refugee children’s earnings in adulthood

    Refugee status and country of origin shape the economic outcomes of newcomer children later in life

    Yoko YoshidaJonathan AmoyawRachel McLay , January 2022
    The number of refugees has increased worldwide, and about half of them are children and youth. These refugee children arrive in resettlement countries with a unique set of challenges caused by, for instance, extreme stress and trauma that call for specific policies to address their needs. Yet, the long-term effect of refugee status on newcomer children's economic trajectories varies by country of origin, signaling the need for effective resettlement support and initiatives to tackle broader systemic barriers for newcomer children, beyond refugees. Such findings challenge the commonly held notion of refugees as a distinctive, relatively homogeneous group with similar trajectories.
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  • Performance-related pay and productivity Updated

    Do performance-related pay and financial participation schemes have an effect on firms’ performance?

    Claudio LuciforaFederica Origo , January 2022
    A growing number of firms offer compensation packages that link pay to performance. The aim is to motivate workers to be more efficient while also increasing their attachment to the company, thereby reducing turnover and absenteeism. The effects of performance-related pay on productivity depend on the scheme type and design, with individual incentives showing the largest effect. Governments often offer tax breaks and financial incentives to promote performance-related pay, though their desirability has been questioned due to large deadweight losses involved. The diffusion of remote work will increase the relevance of performance-related pay.
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  • Firms, sorting, and the immigrant–native earnings gap

    The immigrant–native earnings gap is due in part to firm-specific factors resulting from differential sorting of workers into firms

    Benoit Dostie , January 2022
    Recent research has tried to quantify how firms contribute to the immigrant–native earnings gap. Findings from several countries show that around 20% of the gap is due to firm policies that lead to a systematic underrepresentation of immigrants at higher-paying firms. Results also show that some of the closing of the gap over time is attributable to the reallocation of immigrants toward higher-paying employers. This pattern is especially pronounced for immigrants coming from disadvantaged countries, who face several barriers at initial entry, including language difficulties and lack of recognition of their educational credentials.
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  • The relationship between recessions and health Updated

    Economic recessions seem to reduce overall mortality rates, but increase suicides and mental health problems

    Nick Drydakis , December 2021
    Recessions are complex events that affect personal health and behavior via various potentially opposing mechanisms. While recessions are known to have negative effects on mental health and lead to an increase in suicides, it has been proven that they reduce mortality rates. A general health policy agenda in relation to recessions remains ambiguous due to the lack of consistency between different individual- and country-level approaches. However, aggregate regional patterns provide valuable information, and local social planners could use them to design region-specific policy responses to mitigate the negative health effects caused by recessions.
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events
  • Feb 18, 2022 - Feb 19, 2022

    PILLARS Conference on Education, Skills, and Worker Retraining

    Munich, Germany

    The purpose of the conference is to bring together researchers from a broad range of economic fields to discuss ongoing research on the future of work. Papers investigating skill requirements in the digital age and how (re-)training may help workers to adapt to changing work environments and new skill demand are of particular interest.

  • Feb 24, 2022 - Feb 25, 2022

    14th FIW-Research Conference 'International Economics'

    Vienna, Austria

    The main objective of the conference is to provide a platform for economists working in the field of ‘International Economics’ to present recent research. The broad topic of the conference is ‘International Economics’. This includes, inter alia, International Trade, International Factor Movements, Economic Integration, Trade Policy, International Trade Organizations, Economic Growth of Open Economies, Multinational Firms, Global Value Chains, International Macroeconomics and other related fields.

  • Mar 01, 2022

    Call for papers EALE conference 2022

    Padova, Italy

    All labour economists are invited to submit papers for presentation at the 34th Annual Conference of the European Association of Labour Economists, to be held in Padova, Italy, from 8 to 10 September 2022. The department of Economics and Management "Marco Fanno" of the University of Padova will host the conference.

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