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
The shadow economy in industrial countries
Reducing the size of the shadow economy requires reducing its attractiveness while improving official institutions
The shadow (underground) economy plays a major role in many countries. People evade taxes and regulations by working in the shadow economy or by employing people illegally. On the one hand, this unregulated economic activity can result in reduced tax revenue and public goods and services, lower tax morale and less tax compliance, higher control costs, and lower economic growth rates. But on the other hand, the shadow economy can be a powerful force for advancing institutional change and can boost the overall production of goods and services in the economy. The shadow economy has implications that extend beyond the economy to the political order.
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Female poverty and intrahousehold inequality in transition economies Updated
An unequal distribution of resources within the family is a special concern for female poverty
Luca Piccoli , February 2023Transition to a market economy is accompanied by a period of greater economic uncertainty. Women are likely to suffer substantial disadvantages from this uncertainty compared to men as they are, for example, more likely to lose their job. This not only implies a monetary loss for the entire family, but also degrades female bargaining power within the household, possibly further aggravating their well-being. When intrahousehold inequality—an unequal distribution of resources among family members—exists, female poverty might be significantly larger than what can be deduced using standard household-based poverty measures.MoreLess -
Covid-19 and the youth-to-adult unemployment gap
Is the youth labor market bearing the brunt of the pandemic?
Francesco Pastore , January 2023The Covid-19 pandemic has produced unprecedented negative effects on the global economy, affecting both the demand and supply side. Its consequences in terms of job losses have been important in many European countries. A large number of firms have been forced to dismiss at least part of their workforce or to close down all together. Considering that young people are usually penalized more than their adult counterparts during economic crises due to the so-called “last-in-first-out” principle, it is worthwhile to evaluate if the youth will also end up paying the highest price during this pandemic-induced recession.MoreLess -
Does government spending crowd out voluntary labor and donations? Updated
There is little evidence that government spending crowds out private charitable donations of time and money
Julia BredtmannFernanda Martinez Flores , January 2023Private charitable contributions play an essential role in most economies. From a policy perspective, there is concern that comprehensive government spending might crowd out private charitable donations. If perfect crowding out occurs, then every dollar spent by the government will lead to a one-for-one decrease in private spending, leaving the total level of welfare unaltered. Understanding the magnitude and the causes of crowding out is crucial from a policy perspective, as crowding out represents a hidden cost to public spending and can thus have significant consequences for government policies toward public welfare provision.MoreLess -
Fertility postponement and labor market outcomes Updated
Postponed childbearing improves women’s labor market outcomes but may reduce overall fertility
Massimiliano Bratti , January 2023The rise in the average age of women bearing their first child is a well-established demographic trend in recent decades. Postponed childbearing can have important consequences for the mothers and, at a macro level, for the country in which they live. Research has primarily focused on the effect postponing fertility has on mothers’ labor market outcomes and on the total number of children a woman has in her lifetime. Most research finds that postponing the first birth raises a mother's labor force participation and wages but may have negative effects on overall fertility, especially in the absence of supportive family-friendly policies.MoreLess -
In-plant alliances can mitigate economic crisis impacts Updated
Decentral bargaining is an instrument to address both imminent economic crises and for increasing firm competitiveness
Lutz BellmannWerner Widuckel , December 2022In-plant alliances are plant-specific deviations from sectoral collective agreements related to wages and working time that are intended to hold down labor costs. These agreements enable firm-level reorganizations to respond to an imminent economic crisis or to improve competitiveness. They also encourage social partners to take greater responsibility for employment issues. Both unions and works councils agree to such contracts because they see them as helpful in avoiding severe employment losses. Thus, these alliances substantially unburden public employment policy.MoreLess -
Does working from home work in developing countries?
Infrastructure constraints are major obstacles for working from home in developing countries
Mariana Viollaz , December 2022Work-from-home possibilities are lower in developing than in developed countries. Within countries, not all workers have equal chances of transitioning from the usual workplace to work-from-home. Moreover, infrastructure limitations and lack of access to certain services can limit the chances of effectively working from home. Having a home-based job can affect, positively or negatively, work–life balance, levels of job satisfaction and stress, and productivity. The differential chances of working from home may end up increasing the levels of income inequality between workers who can and those who cannot work from home.MoreLess -
Temporary migration entails benefits, but also costs, for sending and receiving countries
There are important trade-offs between temporary and permanent migration
Joseph-Simon GörlachKatarina Kuske , November 2022Many migrants do not stay in their host countries permanently. On average, 15% of migrants leave their host country in a given year, many of whom will return to their home countries. Temporary migration benefits sending countries through remittances, investment, and skills accumulation. Receiving countries benefit via increases in their prime-working age populations while facing fewer social security obligations. These fiscal benefits must be balanced against lower incentives to integrate and invest in host country specific skills for temporary migrants.MoreLess -
Incentivizing sleep?
Insufficient sleep affects employment and productivity
Joan Costa-Font , November 2022Spending time sleeping not only improves individuals’ well-being, but it can influence employment outcomes and productivity. Sleep can be disrupted by company schedules and deadlines, extended working times, and several individual and household decisions. Labor market regulation and corporate strategies should factor in the immediate effect of insufficient sleep on employee fatigue and cognitive performance, and the associated effects on employment disruption and productivity loss. Sleep can be influenced by “sleep friendly” employment regulations, technology nudges, monetary incentives, and subsidies for sleeping.MoreLess
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Jan 31, 2023
Long Covid hurting US economy; Union support rising in UK despite strikes
Today’s global news summary brings news affecting the USA, the UK, and France and discusses issues as diverse as long Covid, strikes, and pensions. -
Jan 24, 2023
Japan’s population crisis; Portugal to swap Cape Verde debt for environmental investment
Today’s global news summary brings news affecting Japan, Cape Verde, and the USA and discusses issues as diverse as birth rates, environmental investment, and tech job loss. -
Jan 17, 2023
China’s population falls; UK government blocks Scottish gender bill
Today’s global news summary brings news affecting China, the UK, and the globe and discusses issues as diverse as population decline, trans rights, and extreme wealth and poverty. -
Jan 10, 2023
Long-term illness hitting UK economy; American childhood obesity guidance revised
Today’s global news summary brings news affecting the UK and the US and discusses issues as diverse as economic inactivity, obesity, and hybrid working.
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May 12, 2023 - May 13, 2023
SOLE Annual Meeting
Philadelphia, United States
The Society of Labor Economists will hold its Twenty-Eighth Annual Meetings May 12–13, 2023, at the Sonesta Philadelphia Rittenhouse Square.
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Sep 21, 2023 - Sep 23, 2023
EALE 2023 Conference
Prague, Czech Republic
You can submit your paper here.
IZA World of Labor discussion on higher education
IZA World of Labor discussion on the environment and the labor market
IZA World of Labor discussion on inflation and the labor market
“If you have your health, you have everything”? The true value of health
Labor market concentration and competition policy across the Atlantic
The gift of a lifetime: The hospital, modern medicine, and mortality