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 

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Job search monitoring and assistance for the unemployed 

Can job search requirements and job search assistance help the unemployed find better jobs faster?

Ioana E. Marinescu

In many countries, reducing unemployment is among the most important policy goals. In this context, monitoring job search by the unemployed and providing job search assistance can play a crucial role. However, more and more stringent monitoring and sanctions are not a panacea. Policymakers must consider possible downsides, such as unemployed people accepting less stable and lower-paying jobs. Tying “moderate” monitoring to job search assistance may be the essential ingredient to make this approach successful.

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  • How to attract international students? Updated

    Studying abroad benefits the students, the host country, and those remaining at home

    Arnaud Chevalier , May 2022
    In 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.
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  • Presenteeism at the workplace

    Working when sick is a widespread phenomenon with serious consequences for workers, firms, and society

    Claus Schnabel , May 2022
    Many 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.
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  • Gross domestic product: Are other measures needed? Updated

    GDP summarizes only one aspect of a country’s condition; other measures in addition to GDP would be valuable

    Barbara M. Fraumeni , April 2022
    Gross domestic product (GDP) is the key indicator of the health of an economy and can be easily compared across countries. But it has limitations. GDP tells what is going on today, but does not inform about sustainability of growth. The majority of time is spent in home production, yet the value of this time is not included in GDP. GDP does not measure happiness, so residents can be dissatisfied even when GDP is rising. In addition, GDP does not consider environmental factors, reflect what individuals do outside paid employment, or even measure the current or future potential human capital of a country. Hence, complementary measures may help to show a more comprehensive picture of an economy.
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  • Economic effects of natural disasters

    Natural disasters cause significant short-term disruptions, but longer-term economic impacts are more complex

    Tatyana Deryugina , April 2022
    Extreme weather events are increasing in frequency and intensity, threatening lives and livelihoods around the world. Understanding the short- and long-term effects of such events is necessary for crafting optimal policy. The short-term economic impacts of natural disasters can be severe, suggesting that policies that better insure against consumption losses during this time would be beneficial. Longer-term economic impacts are more complex and depend on the characteristics of the affected population and the affected area, changes in migration patterns, and public policy.
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  • Employment and wage effects of extending collective bargaining agreements Updated

    Sectoral collective contracts reduce inequality but may lead to job losses among workers with earnings close to the wage floors

    In many countries, the wage floors and working conditions set in collective contracts negotiated by a subset of employers and unions are subsequently extended to all employees in an industry. Those extensions ensure common working conditions within the industry, mitigate wage inequality, and reduce gender wage gaps. However, little is known about the so-called bite of collective contracts and whether they limit wage adjustments for all workers. Evidence suggests that collective contract benefits come at the cost of reduced employment levels, though typically only for workers earning close to the wage floors.
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  • Is there an optimal school starting age? Updated

    It depends: older children perform better on standardized tests, but evidence of older school starting ages on long-term outcomes is mixed

    There is a widely held belief that older students, by virtue of being more mature and readier to learn at school entry, may have better academic, employment, and earnings outcomes compared to their younger counterparts. There are understated, albeit important, costs to starting school later, however. Compulsory school-attendance laws may allow these same older pupils to drop out of high school earlier, which could adversely impact their employment; entering the workforce later also has implications for lifetime earnings and remittances to governments. Overall, research suggests that school-age entry policies can improve student achievement in the short term, but the long-term impacts are currently not well-understood.
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  • Youth extracurricular activities and the importance of social skills for supervisors

    Social skills developed during extracurricular activities in adolescence can be highly valuable in managerial occupations

    Vasilios D. Kosteas , March 2022
    Youth participation in extracurricular activities is associated with a variety of benefits, ranging from higher concurrent academic performance to better labor market outcomes. In particular, these activities provide avenues through which youth can develop the interpersonal and leadership skills that are crucial to succeed as a manager. A lack of opportunity to participate in extracurricular activities for many youths, particularly those from lower-income backgrounds, may have negative consequences for developing the next generation of managers and business leaders.
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  • Does emigration increase the wages of non-emigrants in sending countries Updated

    Emigration can increase the wages of non-emigrants, but may eventually lead to lower productivity and wage losses

    Benjamin Elsner , March 2022
    How migration affects labor markets in receiving countries is well understood, but less is known about how migration affects labor markets in sending countries, particularly the wages of workers who do not emigrate. Most studies find that emigration increases wages in the sending country but only for non-emigrants with substitutable skills similar to those of emigrants; non-emigrants with different (complementary) skills lose. These wage reactions are short-term effects, however. If a country loses many highly educated workers, the economy can become less productive altogether, leading to lower wages for everyone in the long term.
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  • May 19, 2022 - May 21, 2022

    26th Spring Meeting of Young Economists (SMYE 2022)

    Orleans, France

    The goal of the conference is to promote the exchange of ideas and experience among young economists conducting research in all fields of economics.

  • May 20, 2022

    G²LM|LIC COVID-19 Research Meeting

    Online

    This year's G²LM|LIC COVID-19 Research Meeting will focus on the results of COVID-19 related research, the evidence found and the challenges the projects had to deal with.

  • May 23, 2022 - May 27, 2022

    23rd IZA Summer School in Labor Economics

    Buch/Ammersee, Germany

    The objective of the Summer School is to bring together PhD students and senior lecturers to study topics in labor economics. Students have the opportunity to present their work and discuss ideas with established researchers in a relaxed and open atmosphere.

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