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
Roma integration in European labor markets
Nuclei of evidence tell a grim story, but a veil of ignorance impedes policy efforts
The Roma are the largest ethnic minority in Europe—as well as one of the most disadvantaged. A triple vicious circle is at play: Substandard socio-economic outcomes reinforce each other; they fuel negative attitudes and perceptions, leading to ill-chosen policies; and segmentation is perpetuated through (statistical) discrimination. A severe lack of data precludes progress. However, existing bits of evidence point to virtuous ways out.
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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 2022Numerous 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.MoreLess -
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
Elodie DouarinTomasz Mickiewicz , June 2022An 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.MoreLess -
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
Susanne Ek Spector , June 2022A 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.MoreLess -
Determinants of inequality in transition countries
Market changes and limited redistribution contributed to high income and wealth inequality growth in Eastern Europe
Michal BrzezinskiKatarzyna Salach , June 2022High 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.MoreLess -
Does employee ownership improve performance? Updated
Employee ownership generally increases firm performance and worker outcomes
Douglas Kruse , May 2022Employee 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.MoreLess -
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.MoreLess -
How to attract international students? Updated
Studying abroad benefits the students, the host country, and those remaining at home
Arnaud Chevalier , May 2022In 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.MoreLess -
Presenteeism at the workplace
Working when sick is a widespread phenomenon with serious consequences for workers, firms, and society
Claus Schnabel , May 2022Many workers admit that at times they show up for work even though they feel sick. This behavior, termed “presenteeism,” is puzzling since most workers do not incur financial losses when staying home sick. The various reasons behind presenteeism are person-related (e.g. individuals’ health or job attitude) or work-related (e.g. job demands and constraints on absence from work). Working when sick can have positive and negative consequences for workers’ performance and health, but it also affects co-workers’ well-being and firms’ productivity. There are various strategies as to how firms can address presenteeism.MoreLess
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Jun 21, 2022
Japanese court dismisses case arguing same-sex marriage is unconstitutional; US tech firms worried about H-1B kids “aging out”
Today’s global news summary brings news affecting Japan, the US, and the UK, and discusses issues as diverse as same-sex marriage, migration, and the cost of living crisis. -
Jun 14, 2022
UK fails to deport first asylum seekers to Rwanda; South Korean truckers’ strike affects global supply chain
Today’s global news summary brings news affecting the UK, South Korea, and South Africa, and discusses issues as diverse as asylum, unionization, and youth unemployment. -
Jun 07, 2022
UK starts world’s biggest four-day week pilot; President Biden attempts to boost US solar production
Today’s global news summary brings news affecting the UK and the US, and discusses issues as diverse as work hours, climate change, and employee ownership. -
May 24, 2022
The Middle East and North Africa are facing the highest rates of youth unemployment; 22,000 migrants have been prevented from entering the EU from Greece so far in 2022
Today’s global news summary brings news from the Middle East and North Africa, Greece, and the UK and discusses issues as diverse as youth unemployment, migration, and climate change.
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Jul 20, 2022 - Jul 22, 2022
5th IZA Labor Statistics Workshop: The Measurement of Incomes, Living Costs and Standards of Living
Online
The purpose of the 2022 workshop of IZA’s “Labor Statistics” program area is to bring together senior and junior researchers to discuss their recent empirical research related to incomes, living costs, and standards of living.
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Jul 22, 2022
7th World Congress of the International Society of Business Economics and Ethics
Bilbao, Spain
You are cordially invited to (re-)submit proposals for the 7th ISBEE World Congress in Bilbao, Spain, to participate in the discourse on how we may re-invent globalization, the role of local communities, virtues and values, and the power of purpose.
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Sep 16, 2022 - Sep 17, 2022
5th IDSC of IZA Workshop: Matching Workers and Jobs Online - New Developments and Opportunities for Social Science and Practice
Online
Like many forms of economic exchange, the process of matching workers to jobs has rapidly migrated online in the last two decades. Thus, understanding how online labor matching mechanisms work; how they affect economic outcomes like employment, wages and inequality; and learning how to take advantages of the ‘big data’ that are generated by online markets all have important implications for the future of labor.
IZA World of Labor panel discussion on environment and health
IZA World of Labor panel discussion on gender and family issues
IZA World of Labor panel discussion on migration issues
Effects of the Russia-Ukraine crisis on food prices and well-being
The four-day workweek
Immigration, employment, and innovation