• The labor market in New Zealand, 2000−2021 Updated

    Employment has grown steadily, unemployment is low, and the gender gap and skill premiums have fallen

    David C. Maré , August 2022
    New Zealand is a small open economy, with large international labor flows and skilled immigrants. After the global financial crisis (GFC) employment took four years to recover, while unemployment took more than a decade to return to pre-crisis levels. Māori, Pasifika, and young workers were worst affected. The Covid-19 pandemic saw employment decline and unemployment rise but this was reversed within a few quarters. However, the long-term impact of the pandemic remains uncertain.
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  • Demographic and economic determinants of migration Updated

    Push and pull factors drive the decision to stay or move

    There are a myriad of economic and non-economic forces behind the decision to migrate. Migrants can be “pushed” out of their home countries due to deteriorating economic conditions or political unrest. Conversely, migrants are often “pulled” into destinations that offer high wages, good health care, strong educational systems, or linguistic proximity. In making their decision, individuals compare the net benefits of migration to the costs. By better understanding what forces affect specific migrant flows (e.g. demographic characteristics, migrant networks, and economic conditions), policymakers can set policy to target (or reduce) certain types of migrants.
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  • The gender gap in time allocation

    Gender inequalities in daily time allocation may have detrimental effects on earnings and well-being

    Many countries experience gender differences, of various magnitudes, in the time devoted to paid work (e.g. market work time) and unpaid work (e.g. housework and childcare). Since household responsibilities influence the participation of women, especially mothers, in the labor market, the unequal sharing of unpaid work, with women bearing the brunt of housework and childcare, is one of the main drivers of gender inequality in the labor market. Understanding the factors behind these gender inequalities is crucial for constructing policies aimed at promoting gender equality and combating gender-based discrimination.
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  • Parental leave and maternal labor supply Updated

    Parental leave increases the family–work balance, but prolonged leave may have negative impacts on mothers’ careers

    Astrid Kunze , June 2022
    Numerous studies have investigated whether the provision and generosity of parental leave affects the employment and career prospects of women. Parental leave systems typically provide either short unpaid leave mandated by the firm, as in the US, or more generous and universal leave mandated by the government, as in Canada and several European countries. Key economic policy questions include whether, at the macro level, female employment rates have increased due to parental leave policies; and, at the micro level, whether the probability of returning to work and career prospects have increased for mothers after childbirth.
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  • Is the post-communist transition over?

    Support for economic liberalization reforms is essential, but it grows stronger only where societies experience the effects of reversing these reforms

    An extensive program of economic liberalization reforms, even when it generates positive outcomes, does not automatically generate support for further reforms. Societies respond with strong support only after experiencing the effects of reversing these reforms (i.e. corruption, inequality of opportunity). This point is illustrated through the example of the post-communist transformation in Eastern Europe and Central Asia—arguably a context where the end point of reforms was never clearly defined, and even successful reforms are now associated with a degree of reform suspicion.
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  • Should unemployment insurance cover partial unemployment? Updated

    Time-limited benefits may yield significant welfare gains and help underemployed part-time workers move to full-time employment

    A considerable share of the labor force consists of underemployed part-time workers: employed workers who, for various reasons, are unable to work as much as they would like to. Offering unemployment benefits to part-time unemployed workers is controversial. On the one hand, such benefits can strengthen incentives to take a part-time job rather than remain fully unemployed, thus raising the probability of obtaining at least some employment. On the other hand, these benefits weaken incentives for part-time workers to look for full-time employment. It is also difficult to distinguish people who work part-time by choice from those who do so involuntarily.
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  • Determinants of inequality in transition countries

    Market changes and limited redistribution contributed to high income and wealth inequality growth in Eastern Europe

    High levels of economic inequality may lead to lower economic growth and can have negative social and political impacts. Recent empirical research shows that income and wealth inequalities in Eastern Europe since the fall of socialism increased significantly more than previously suggested. Currently, the average Gini index (a common measure) of inequality in Eastern Europe is about 3 percentage points higher than in the rest of Europe. This rise in inequality was initially driven by privatization, liberalization, and deregulation reforms, and, more recently, has been amplified by technological change and globalization coupled with relatively ungenerous income and wealth redistribution policies.
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  • Does employee ownership improve performance? Updated

    Employee ownership generally increases firm performance and worker outcomes

    Douglas Kruse , May 2022
    Employee ownership has attracted growing attention for its potential to improve economic outcomes for companies, workers, and the economy in general, and help reduce inequality. Over 100 studies across many countries indicate that employee ownership is generally linked to better productivity, pay, job stability, and firm survival—though the effects are dispersed and causation is difficult to firmly establish. Free-riding often appears to be overcome by worker co-monitoring and reciprocity. Financial risk is an important concern but is generally minimized by higher pay and job stability among employee owners.
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  • Measuring poverty within the household

    Standard poverty measures may drastically understate the problem; the collective household model can help

    A key element of anti-poverty policy is the accurate identification of poor individuals. However, measuring poverty at the individual level is difficult since consumption data are typically collected at the household level. Per capita measures based on household-level data ignore both inequality within the household and economies of scale in consumption. The collective household model offers an alternative and promising framework to estimate poverty at the individual level while accounting for both inequality within the household and economies of scale in consumption.
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  • How to attract international students? Updated

    Studying abroad benefits the students, the host country, and those remaining at home

    In knowledge-based economies, attracting and retaining international students can help expand the skilled workforce. Empirical evidence suggests that open migration policies and labor markets, whereby students can remain in the host country post-study, as well as good quality higher education institutions are crucial for successfully attracting international students. Student migration can positively affect economic growth in both sending and receiving countries, even though migrants themselves reap most of the gains, mainly through higher earnings.
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