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.

 

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Do school inputs crowd out parents’ investments in their children?

Public education tends to crowd out parents’ time and money, but careful policy design may mitigate this

Birgitta Rabe

Many countries around the world are making substantial and increasing public investments in children by providing resources for schooling from early years through to adolescence. Recent research has looked at how parents respond to children’s schooling opportunities, highlighting that public inputs can alternatively encourage or crowd out parental inputs. Most evidence finds that parents reduce their own efforts as schooling improves, dampening the efficiency of government expenditure. Policymakers may thus want to focus government provision on schooling inputs that are less easily substituted.

  • The importance of informal learning at work Updated

    On-the-job learning is more important for workers’ human capital development than formal training

    Andries De Grip , March 2024
    Although early human capital theory recognized the relevance of workers’ experience, its focus was on education and formal training. More recent studies show that much of the performance of newly hired workers is driven by learning by doing or learning from peers or supervisors in the workplace. Descriptive data show that workers learn a lot from the various tasks they perform on the job. Informal learning at work seems to be relevant for all age groups, although it is more meaningful for younger workers’ performance. Informal learning is far more important for workers’ human capital development than formal training courses.
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  • Compensating displaced workers Updated

    Job displacement is a serious earnings risk and the displaced are typically poorly insured

    Donald O. Parsons , February 2024
    Job displacement is a serious earnings risk to long-tenured workers, both through spells of unemployment and through reduced wages on subsequent jobs. Less developed countries often rely exclusively on government mandated employer-provided severance pay to protect displaced workers. Higher income countries usually rely on public unemployment insurance and mandated severance pay. Beyond these options, more administratively demanding plans have been proposed, including UI savings accounts and “actual loss” wage insurance, though real-world experience on either model is lacking.
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  • Trans people, well-being, and labor market outcomes Updated

    Transitioning across gender is related to greater life and job satisfaction but also affects acceptance in one’s society

    Nick Drydakis , January 2024
    Acceptance of one’s gender identity and congruence between one’s gender identity and outward appearance are associated with less adverse mental health symptoms, and greater life and job satisfaction. However, trans people are subject to human rights violations, hate crimes, and experience higher unemployment and poverty than the general population. Trans people often feel that they are citizens who are not allowed to be themselves and practice their authentic identity. Many biased treatments of trans people could be attenuated if legal protections and inclusive workplace practices were in place.
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  • Labor market institutions and policies in old and new EU members Updated

    After three recessions, a new emphasis on the importance of collective institutions and social dialogue is emerging

    Riccardo Rovelli , January 2024
    Old and new EU member states still adopt quite different labor market institutions and policies: convergence has been partial and limited. Nevertheless, a new agreement is spreading on the importance of well-developed, coordinated institutions, supported by social dialogue, in view of the increasing challenges posed by the macro economy and by the increasing fragmentation of labor markets.
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  • Apr 09, 2024 - Apr 10, 2024

    IZA/OECD Workshop: Applications with Linked Employer-Employee Data

    Paris

    The workshop seeks to bring together researchers who share an interest in using linked employer-employee data for innovative and policy-relevant research. The workshop will take place on April 10 and be preceded by a policy seminar with a keynote speaker on April 9. The workshop is organized in the context of the OECDs LinkEED v 2.0 project that seeks to enhance our understanding of the role of policies in inclusive growth through cross-country analytical work based on linked employer-employee data from different OECD countries. We welcome submissions of applied papers using linked employer-employee data in all areas.

  • Apr 25, 2024

    2nd IZA/OECD Workshop: Climate Change and the Labor Market

    Online

    The IZA/OECD workshops aim to increase synergies between researchers and OECD experts to promote the societal impact of academic research and the relevance of expertise. These workshops are organized twice a year and focus on topics of particular importance to the economy and society. They bring together researchers from the IZA network, OECD experts and policymakers. They take place by videoconference, over half a day, with presentations by experts, researchers and discussions with policymakers.