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Evidence-based policy making

World of Labour is an online platform that provides policy analysts, journalists, academics, and society generally with relevant and concise information on labour market issues. Based on the latest research, it provides current thinking on labour markets worldwide in a clear and accessible style. World of Labour aims to support evidence-based policy making and increase awareness of labour market issues, including current concerns like the impact of technological progress, and longer-term problems like inequality.

 

Featured Article

The consequences of trade union power erosion Updated

Declining union power would not be an overwhelming cause for concern if not for rising wage inequality and the loss of worker voice

The micro- and macroeconomic effects of the declining power of trade unions have been hotly debated by economists and policymakers, although the empirical evidence does little to suggest that the impact of union decline on economic aggregates and firm performance is an overwhelming cause for concern. That said, the association of declining union power with rising earnings inequality and the loss of an important source of dialogue between workers and their firms have proven more worrisome if no less contentious. Causality issues dog the former association and while the diminution in representative voice seems indisputable any depiction of the non-union workplace as an authoritarian “bleak house” is more caricature than reality.

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  • The brain drain from developing countries Updated

    Brain drain need not be a curse—it can be a catalyst: under the right conditions, selective emigration promotes skills acquisition and economic development in the country of origin.

    Brain drain refers to the selective emigration of highly educated people, who often have stronger incentives to migrate and face fewer barriers. At first glance, this seems to be an adverse situation: losing doctors, engineers or teachers could hinder development. However, migration can also be beneficial by spurring investment in skills, fueling remittances, fostering innovation, business links, and transfers of knowledge and norms. The net impact depends on the skills involved and the context, creating an opportunity for policies that transform emigration into a driver of development.
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  • The labour market in Portugal, 2000-2024

    Portugal’s labour market has become more flexible but still struggles with deep-rooted issues of precariousness and low wages

    Anabela Carneiro , April 2026
    The Portuguese labour market has stabilised after the 2010–2013 sovereign debt crisis, which pushed unemployment to a historic 18.5%. By 2025, the rate of unemployment has exhibited low-record levels reaching 5.9%. Long-term unemployment has declined, and the female employment rate reached historical values. Yet, several structural imbalances persist. Productivity levels remain low compared to European peers, and wages continue to struggle to keep pace with the cost of living.
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  • Minimum wage policy and undeclared wages in transition economies

    Increasing minimum wage can decrease labour tax evasion

    Nicolas Gavoille , March 2026

    How do minimum wage policies interact with labour tax evasion? In many transition economies, two features stand out: a large spike in the wage distribution at the minimum wage and widespread use of “envelope wages”—undeclared cash paid in addition to official earnings. This spike can be explained by the over-representation of tax-evading employers among minimum wage payers. In such a context, raising the minimum wage may serve as an enforcement tool by compelling evading firms to convert part of the undeclared pay into formal wages in order to comply with the legal minimum.

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  • The labor market in Mexico, 2005–2025

    Mexico faces challenges in creating more high-paying jobs

    While Mexico has improved the education of its labor force, maintained a stable macroeconomic environment, and been friendly to international trade, its labor market still faces many challenges. In particular, Mexico has difficulty creating high-paying jobs: the share of informal employment has remained stagnant for the last 20 years, and, by 2025, remains above 50%. These problems are particularly poignant in southern Mexico.
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