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.

featured article

How do candidates’ looks affect their election chances?

Looks matter and can tip the scales between the right and left

Panu Poutvaara

Good-looking political candidates win more votes around the world. This holds for both male and female candidates. Candidate appearance may be especially important for uninformed voters, as it is easy to observe. Voters may favor good-looking candidates because they expect them to be more competent or persuasive, but it can also be that voters simply enjoy laying their eyes on beautiful politicians. As politicians on the right have been deemed more attractive in Europe, the US, and Australia, the importance of beauty in politics favors conservative parties. A related finding is that voters use beauty as a cue for conservatism.

MoreLess
  • The labor market in the US, 2000–2018

    Recovery from the Great Recession is complete, but there are difficult unemployment and wage problems

    As the largest economy in the world, the US labor market is crucial to the economic well-being of citizens worldwide as well, of course, that of its own citizens. Since 2000 the US labor market has undergone substantial changes, both reflecting the Great Recession, but also resulting from some striking trends. Most interesting have been a remarkable drop in the labor force participation rate, reversing a nearly 50-year trend; the full recovery of unemployment from the depths of the Great Recession; and the little-known continuing growth in post-inflation average earnings.
    MoreLess
  • Gender diversity in teams

    Greater representation of women may better represent women’s preferences but may not help economic performance

    Ghazala Azmat, May 2019
    Women's representation on corporate boards, political committees, and other decision-making teams is increasing, this is in part because of legal mandates. Evidence on team dynamics and gender differences in preferences (for example, risk-taking behavior, taste for competition, prosocial behavior) shows how gender composition influences group decision-making and subsequent performance. This works through channels such as investment decisions, internal management, corporate governance, and social responsibility.
    MoreLess
  • Short-time work compensation schemes and employment

    Temporary government schemes can have a positive economic effect

    Pierre Cahuc, May 2019
    Government schemes that compensate workers for the loss of income while they are on short hours (known as short-time work compensation schemes) make it easier for employers to temporarily reduce hours worked so that labor is better matched to output requirements. Because the employers do not lay off these staff, the schemes help to maintain permanent employment levels during recessions. However, they can create inefficiency in the labor market, and might limit labor market access for freelancers and those looking to work part-time.
    MoreLess
  • 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, May 2019
    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.
    MoreLess
show more
show more
show more