advanced search
advanced search
register
advanced search

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 

featured article
 

Short-time work compensation schemes and employment
Temporary government schemes can have a positive economic effect

Pierre Cahuc

Government schemes that compensate workers for the loss of income while they are on short hours (known as short-time work compensation schemes) make it easier for employers to temporarily reduce hours worked so that labor is better matched to output requirements. Because the employers do not lay off these staff, the schemes help to maintain permanent employment levels during recessions. However, they can create inefficiency in the labor market, and might limit labor market access for freelancers and those looking to work part-time.

MoreLess
latest articles

  • How are minimum wages set? Updated

    Countries set minimum wages in different ways, and some countries set different wages for different groups of workers

    Richard Dickens , September 2023
    The minimum wage has never been as high on the political agenda as it is today, with politicians in Germany, the UK, the US, and other OECD countries implementing substantial increases in the rate. One reason for the rising interest is the growing consensus among economists and policymakers that minimum wages, set at the right level, may help low paid workers without harming employment prospects. But how should countries set their minimum wage rate? The processes that countries use to set their minimum wage rate and structure differ greatly, as do the methods for adjusting it. The different approaches have merits and shortcomings.
    MoreLess

  • Should the earned income tax credit rise for childless adults? Updated

    The earned income tax credit boosts income and work effort among low-income parents, especially single mothers, and has contributed to the steep rise in employment among single mothers in the 1990s.

    Harry J. Holzer , September 2023
    The earned income tax credit provides important benefits to low-income families with children. At substantial costs (over $70 billion to the US federal government), it increases the incomes of such families while encouraging parents to work more by subsidizing their incomes. But low-income adults without children and non-custodial parents receive very low payments under the program in most years. Many of these adults are less-educated men, whose labor force participation rates and relative wages have been declining for years. They might benefit significantly from a more generous earned income tax credit for childless adults.
    MoreLess

  • Do institutions matter for entrepreneurial development? Updated

    In post-Soviet countries, well-functioning institutions are needed to foster productive entrepreneurial development and growth

    Ruta Aidis , August 2023
    Since the collapse of the Soviet Union, the differing impact of institutions on entrepreneurship development is undeniable. Several post-Soviet countries benefitted from early international integration by joining the EU, adopting the euro, and becoming OECD members. This process enabled entrepreneurship to develop within institutional contexts where democratic and free market principles were strengthened. In general, however, post-Soviet economies continue to be characterized by higher levels of corruption, complex business regulations, weak rule of law, uncertain property rights and often, lack of political will for institutional change.
    MoreLess

  • How should job displacement wage losses be insured? Updated

    Wage losses upon re-employment can seriously harm long-tenured displaced workers if they are not properly insured

    Donald O. Parsons , July 2023
    Job displacement represents a serious earnings risk to long-tenured workers through lower re-employment wages, and these losses may persist for many years. Moreover, this risk is often poorly insured, although not for a lack of policy interest. To reduce this risk, most countries mandate scheduled wage insurance (severance pay), although it is provided only voluntarily in others, including the US. Actual-loss wage insurance is uncommon, although perceived difficulties may be overplayed. Both approaches offer the hope of greater consumption smoothing, with actual-loss plans carrying greater promise, but more uncertainty, of success.
    MoreLess
show more
Latest from the IZA Newsroom
Visit the IZA Newsroom
commentary
events
  • Oct 19, 2023 - Oct 20, 2023

    18th IZA & 5th IZA/CREST Conference: Labor Market Policy Evaluation

    Paris, Palaiseau

    The 18th IZA & 5th IZA/CREST Conference will be on the topic of Labor Market Policy Evaluation. This conference is an initiative of the Institute of Labor Economics (IZA) in Bonn in cooperation with CREST. The Program Committee invites submissions for about 12 presentations from academic researchers doing program evaluation research on policy issues related to the labor market. Papers that include innovative approaches or methodological contributions are of particular interest.

  • Oct 19, 2023 - Oct 20, 2023

    IZA/ECONtribute Workshop on the Economics of Education

    Bonn, Germany

    The 7th IZA Workshop on the Economics of Education will be helf on October 19 – 20, 2023, in person at IZA Bonn, Germany. The conference will combine invited presentations with an additional poster session aimed at local researchers. Presentations and keynote are available via Zoom for an external audience.

  • Oct 27, 2023 - Oct 28, 2023

    Labor Markets and Innovation during Times of War and Reconstruction

    Online

    The Russian aggression against Ukraine has brought incredible destruction in Ukraine and suffering for the Ukrainian population. In the first two months after February 24th, 2022, economic activities came to a standstill for most Ukrainian workers and firms. However, as time passed, the Ukrainian population has shown its resilience and tremendous courage as economic activity slowly but steadily recovered. Like in many prior conflicts, labor markets and economic production have continued to exist in Ukraine.

  • Oct 30, 2023

    Call for Submissions: Research in Labor Economics (RLE)

    Online

    Research in Labor Economics (RLE) is planning to publish a volume highlighting research on Migration, Human Capital, and the Labor Market. The editors encourage the submission of work using new types of data (job ads, social media, printed texts, etc) and/or data analysis tools such as text analysis or machine learning.

  • Nov 10, 2023

    1st IZA/OECD Workshop: Labor Market Monopsony and Its Regulation

    Online

    The IZA/OECD workshops aim to increase synergies between researchers and OECD experts to promote the societal impact of academic research and the relevance of expertise. These workshops are organized twice a year and focus on topics of particular importance to the economy and society. They bring together researchers from the IZA network, OECD experts and policymakers. They take place by videoconference, over half a day, with presentations by experts, researchers and discussions with policymakers.

  • Dec 15, 2023 - Dec 16, 2023

    G²LM|LIC & BREAD Conference on Development Economics

    Nairobi, Kenya

    The IZA/FCDO Gender, Growth and Labor Markets in Low-Income Countries Programme (G²LM|LIC) and the Bureau for Research and Economic Analysis of Development (BREAD) are pleased to announce a joint Conference on Development Economics .The conference will consist of presentations of advanced stage research by senior or junior researchers, and presentations of early stage research by junior researchers.

clear