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.

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featured article

Are married immigrant women secondary workers?

Patterns of labor market assimilation for married immigrant women are similar to those for men

Ana Ferrer

What is the role of married women in immigrant households? Their contribution to the labor market has traditionally been considered of secondary importance and studied in the framework of temporary attachment to the labor force to support the household around the time of arrival. But this role has changed. Evidence from major immigrant-receiving countries suggests that married immigrant women make labor supply decisions similar to those recently observed for native-born married women, who are guided by their own opportunities in the labor market rather than by their spouses’ employment trajectories.

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  • Do labor costs affect companies’ demand for labor? Updated

    Overtime penalties, payroll taxes, and other labor policies alter costs and change employment and output

    Daniel S. Hamermesh, February 2021
    Higher labor costs (higher wage rates and employee benefits) make workers better off, but they can reduce companies’ profits, the number of jobs, and the hours each person works. The minimum wage, overtime pay, payroll taxes, and hiring subsidies are just a few of the policies that affect labor costs. Policies that increase labor costs can substantially affect both employment and hours, in individual companies as well as in the overall economy.
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  • Statistical profiling of unemployed jobseekers

    The increasing availability of big data allows for the profiling of unemployed jobseekers via statistical models

    Statistical models can help public employment services to identify factors associated with long-term unemployment and to identify at-risk groups. Such profiling models will likely become more prominent as increasing availability of big data combined with new machine learning techniques improve their predictive power. However, to achieve the best results, a continuous dialogue between data analysts, policymakers, and case workers is key. Indeed, when developing and implementing such tools, normative decisions are required. Profiling practices can misclassify many individuals, and they can reinforce but also prevent existing patterns of discrimination.
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  • Correspondence testing studies Updated

    What is there to learn about discrimination in hiring?

    Dan-Olof Rooth, January 2021
    Anti-discrimination policies play an important role in public discussions. However, identifying discriminatory practices in the labor market is not an easy task. Correspondence testing provides a credible way to reveal discrimination in hiring and provide hard facts for policies, and it has provided evidence of discrimination in hiring across almost all continents except Africa. The method involves sending matched pairs of identical job applications to employers posting jobs—the only difference being a characteristic that signals membership to a group.
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  • Individual and family labor market impacts of chronic diseases

    Chronic diseases worsen labor market outcomes, but firms’ hiring and retention policies can reduce them

    Amanda Gaulke, January 2021
    Chronic health conditions are a global concern and can impact labor market outcomes of those diagnosed and their caregivers. Since the global prevalence of many chronic health conditions is on the rise, it is important to know what firms can do to retain and hire workers who are impacted. Firms can improve hiring by addressing biases against potential employees with chronic health conditions. Furthermore, firms can retain impacted workers by offering workplace flexibility such as partial sick leave, work hour flexibility, and part-time work options.
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