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.
Income-contingent loans in higher education financing
Internationally, there has been a student financing revolution toward income-contingent loans
Around ten countries currently use a variant of a national income-contingent loans (ICL) scheme for higher education tuition. Increased international interest in ICL validates an examination of its costs and benefits relative to the traditional financing system, time-based repayment loans (TBRLs). TBRLs exhibit poor economic characteristics for borrowers: namely high repayment burdens (loan repayments as a proportion of income) for the disadvantaged and default. The latter both damages credit reputations and can be associated with high taxpayer subsidies through continuing unpaid debts. ICLs avoid these problems as repayment burdens are capped by design, eliminating default.
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Unemployment benefits and unemployment Updated
The challenge of unemployment benefits is to protect workers while minimizing undesirable side effects
Robert MoffittWonsik Ko , June 2024All developed economies have unemployment benefit programs to protect workers against major income losses during spells of unemployment. By enabling unemployed workers to meet basic consumption needs, the programs protect workers from having to sell their assets or accept jobs below their qualifications. The programs also help stabilize the economy during recessions. If benefits are too generous, however, the programs can lengthen unemployment and raise the unemployment rate. The policy challenge is to protect workers while minimizing undesirable side effects.MoreLess -
The effects of public sector employment on the economy Updated
The size and wage level of the public sector affect overall employment volatility and the economy
Vincenzo CaponiSimone Nobili , June 2024Public sector jobs are established by governments to directly provide goods and services. Governments may also choose to regulate the size of the public sector in order to stabilize targeted national employment levels. However, economic research suggests that these effects are uncertain and critically depend on how public wages are determined. Rigid public sector wages lead to perverse effects on private employment, while flexible public wages lead to a stabilizing effect. Public employment also has important productivity and redistributive effects.MoreLess -
Public or private job placement services — Are private ones more effective? Updated
Outsourcing to the private sector can only be effective if the service quality can be contracted on
Gesine Stephan , May 2024Expenditures on job placement and related services make up a substantial share of many countries’ gross domestic products. Contracting out to private providers is often proposed as a cost-efficient alternative to the state provision of placement services. However, the responsible state agency has to be able and willing to design and monitor sufficiently complete contracts to ensure that the private contractors deliver the desired service quality. None of the empirical evidence indicates that contracting-out is necessarily more effective or more cost-efficient than public employment services.MoreLess -
Entrepreneurship for the poor in developing countries Updated
Well-designed entrepreneurship programs show promise for improving earnings and livelihoods of poor workers
Yoonyoung Cho , May 2024Can entrepreneurship programs be successful labor market policies for the poor? A large share of workers in developing countries are self-employed (mostly own-account workers without paid employees, often interchangeably used as micro entrepreneurs). Their share among all workers has not changed much over the past two decades in the developing world. Entrepreneurship programs provide access to finance (or assets) and advisory and networking services as well as business training with the aim of boosting workers’ earnings and reducing poverty. Programs vary in design, which can affect their impact on outcomes. Recent studies have identified some promising approaches that are yielding positive results, such as combining training and financial support.MoreLess -
The labor market in Brazil, 2001–2022 Updated
Brazil’s long-lasting recession has hurt the poor and has reversed inequality trends
Sergio Pinheiro FirpoAlysson Lorenzon Portella , April 2024In the first decade of the 21st century, the Brazilian economy experienced an important expansion followed by a significant decline in inequality. The minimum wage increased rapidly, reducing inequality with no negative effects on employment or formality. This resulted from economic growth and greater supply of skilled labor. However, from 2014-2021, real wages were stagnant, and unemployment rates surged. Inequality rose again, although only marginally. Some positive signs emerged in 2022, although it is still too early to know whether they mark a return to past trends or a recovery from the pandemic.MoreLess -
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 2024Although 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.MoreLess -
Compensating displaced workers Updated
Job displacement is a serious earnings risk and the displaced are typically poorly insured
Donald O. Parsons , February 2024Job 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.MoreLess -
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 2024Acceptance 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.MoreLess
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Jul 01, 2024
Why are wages often set at round numbers?
New study reveals "coarse wage-setting": Firms use simple heuristics when uncertain about optimal salaries -
Jun 26, 2024
Gender differences in graduate degree choices affect early-career earnings
Female graduates are less likely to do further study in STEM fields -
Jun 14, 2024
Experts divided on climate risk pricing
New study explores how finance professionals' beliefs and mental models influence stock return expectations
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Oct 10, 2024 - Oct 11, 2024
IZA/ECONtribute Workshop on the Economics of Education
Online
The 8th IZA/ECONtribute Workshop on the Economics of Education will convene international scholars focusing on the development of skills within both formal and informal educational contexts and their valuation in the labor market. The conference will feature a select group of presenters, alongside a poster session for local researchers from the host institutions. Presentations and the keynote speech will be accessible via Zoom to an external audience.
IZA World of Labor panel discussion on health and the labor markets
IZA World of Labor discussion on the economics of sport
IZA World of Labor discussion on the economics of education
IZA World of Labor discussion on the economics of crime
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
IZA World of Labor panel on the macroeconomics of labor productivity
IZA World of Labor video on inequality and post transition in emerging economies
IZA World of Labor discussion on labor market evaluation
IZA World of Labor discussion on the economics of education
IZA World of Labor discussion on labor market institutions
IZA World of Labor discussion on measuring poverty with Bruce D. Meyer
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
Panel discussion on the impact of Covid-19 and today's labor market in Europe and the U.S.
IZA World of Labor Panel discussion on inequality, unemployment, wage setting and inflation
IZA World of Labor Panel Discussion on Women in Leadership
Nina Smith on the gender pay gap: An interview with with Daniel S. Hamermesh
Interview with Antti Kauhanen on gender differences in corporate hierarchies
Gender discrimination and sexual harassment: A discussion with Joni Hersch
Panel discussion on air pollution and human development
The gender pay gap: Solomon W. Polachek in conversation with Daniel S. Hamermesh
Panel discussion on labor-force participation issues: Hie Joo Ahn, John Coglianese & Jason Faberman
Discrimination and anti-discrimination policies: Harry Holzer in discussion with Daniel S Hamermesh
Indigenous peoples, inequality and immigration: Randy Akee in conversation with Daniel S Hamermesh
Racial wage differentials in developed countries: Simonetta Longhi in discussion with Dan Hamermesh
Slavery, racial inequality & education: Graziella Bertocchi in conversation with Daniel S Hamermesh
Inequality and informality in transition and emerging countries: Roberto Dell'Anno and Dan Hamermesh
Automation and the future of jobs: Stijn Broecke in conversation with Daniel S Hamermesh
Income inequality and social origins: Lorenzo Cappellari in conversation with Daniel S Hamermesh
Measuring income inequality: Ija Trapeznikova in conversation with Daniel S Hamermesh
The impact of Covid-19 in South Africa: Haroon Bhorat in conversation with Daniel S Hamermesh
The impact of Covid-19 in Chile: Diana Kruger in conversation with Daniel S Hamermesh
The impact of Covid-19 in Japan: Daiji Kawaguchi in conversation with Daniel S Hamermesh
The impact of Covid-19 in Ireland: Alan Barrett in conversation with Daniel S Hamermesh
The impact of Covid-19 in Spain: Juan Dolado in conversation with Daniel S Hamermesh
The impact of Covid-19 in Canada: Phil Oreopoulos in conversation with Daniel S Hamermesh
The impact of Covid-19 in Sweden: Helena Holmlund in conversation with Daniel S Hamermesh
The impact of Covid-19 in Germany: Andreas Peichl in conversation with Daniel S Hamermesh
IZA World of Labor explains inequality
Daniel Hamermesh - Labor costs
Pierre Cahuc - Short-term work compensation
Astrid Kunze - Why do women fall behind men
Susan Houseman - Controversy behind the recent growth of agency work
Susan Houseman - Temporary work employment
Libertad Gonzalez - What areas does divorce legislation affect?
Libertad Gonzalez - Social impact of divorce legislation
Libertad Gonzalez - Why should policymakers be concerned about divorce laws?
Gary Fields - Self-employed poor people in developing economies
John S. Earle - Does privatization lead to job losses and wage cuts?
Bart Cockx - Belgium labor market
Astrid Kunze - Norway labor market
Pierre Cahuc - French labor market
Alex Bryson - UK labor market
Daniel S. Hamermesh - U.S. labor market
Arnaud Chevalier - What are the benefits of attracting foreign students
Brian Cadena - The Marshmallow test
Brian Cadena - Mitigating the negative implications of impatience
Women at Work Around the World
The labor market in Italy, 2000–2016
Five common fears about immigration
IZA Chief Executive Officer Hilmar Schneider on IZA World of Labor
The labor market in Germany, 2000–2016
Ulf Rinne discusses Germany's labor market
The labor market in the US, 2000–2016
Do firms benefit from apprenticeship investment?
Effects of entering adulthood during a recession
Is the return to education the same for everyone
Entdecken Sie unsere neuen Online-Features
Der deutsche Arbeitsmarkt
Escaping the debt trap: Long-run effects of individual debt relief
Empowering local talent
ChatGPT in the workplace: Who's adopting and what's holding others back?
Small children, big problems
How perceived inequality shapes well-being
Reducing presenteeism
Essential yet vulnerable
Working from home increases work-home distances
Intergenerational mobility and credit
Mental health at scale
Parental investments
How differences in job search drive the gender earnings gap
From steel to skills
How human capital reshapes religious affiliation
From refugees to citizens
Transforming societies through education
The impact of abortion bans on birth rates
Reaching for gold!
Seasonal allergies and accidents
Redefining aging
Navigating innovation
Is vocational education and training (VET) an option to increase education and employment?
The parenthood penalty in mental health
How female leaders are transforming workplace dynamics
Managerial stress accelerates aging and increases mortality among CEOs
Traumas of the past
How Many Layoffs Could Be Avoided by Pay Cuts?
Were COVID and the Great Recession Well-being Reducing?
Closing the Gender Pay Gap: A Fresh Approach
Is Your Office Safe? Unpacking the #MeToo Numbers
Where are the fathers?
More accurate weather forecast and mortality
Why Degrowth won’t save the world
Exposure to war and its labor market consequences
Slow traffic, fast food: The effects of time lost on food store choice
Working from home during Covid and women’s job satisfaction
Do international tourist arrivals change residents’ attitudes toward immigration?
The child penalty for graduates
ChatGPT and IZA World of Labor
Does providing social services reduce the risk of repeated domestic abuse?
The direct and indirect effects of online job search advice
Ranking the happiness of countries and states
Telework during the Covid-19 pandemic
Mergers 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
The impact of limiting the outsourcing of jobs
Air pollution and the labor market
Judging affirmative action
Working from home around the world
Job loss during Covid-19 in sub-Saharan Africa
Pass-through and consumer responses to alcohol tax increases
Does gender inequality in today’s labor market perpetuate gender inequality in future generations?
Paying for amenities at work
Can wage transparency alleviate gender sorting in the labor market?
Has the willingness to work fallen during the Covid pandemic?
The recent push toward unionization in the US
Religious diversity improves trust and performance
Effects of the Russia-Ukraine crisis on food prices and well-being
The four-day workweek
Immigration, employment, and innovation
Transgender people face significant economic challenges
The importance of extracurricular activities at school for future managers
School closures and effective in-person learning during Covid-19: When, where, and for whom
Cutting back on work during Covid: How was it done?
A persistent casualty of Covid-19: Children’s skill development
Digital payments surged during Covid-19 in the developing world. What are the opportunities for workers?
Labor markets in low-income countries: Challenges and opportunities
Who benefits when migrants return to developing countries?
How do widespread shocks affect people’s desires to redistribute income?
Employer market power in Silicon Valley
Microfinance and rural non-farm employment in developing countries during the Covid-19 crisis
How do labor market institutions affect job creation and productivity growth?
Can market mechanisms solve refugee crises?
Saving the planet and creating jobs
Masking, Covid-19, and social identity
Does health professionalism among bureaucrats help weather the Covid-19 pandemic?
Solving pension crises
Emigration and the wages of those who stay behind
The shadow economy and the Covid-19 pandemic crisis
How to support the self-employed in developing countries
Substance use and academic performance
Pandemics and the prospects for higher education in developing countries
The challenges of regulating the labor market in developing countries
What economic value is there in speaking another language?: An interview with Gilles Grenier
Household production, what is it and how do we value it?: An interview with Leslie S. Stratton
Low pay jobs, do they “scar” future job prospects?: An interview with Claus Schnabel
Tutoring: An effective solution to help disadvantaged children
The challenging plight of widows
International trade restrictions and the impact on GDP: An interview with L. Alan Winters
Job search during a pandemic recession
What does the Covid-19 R&D response tell us about innovation?
Helping the poor to comply with social distancing
Lifestyle and mental health disruptions during Covid-19
Does Covid-19 make us more averse to inequality?