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
Internal hiring or external recruitment?
UpdatedThe efficacy of hiring strategies hinges on a firm’s simultaneous use of other policies
When an employer fills a vacancy with one of its own workers (through promotion or horizontal transfer), it forgoes the opportunity to fill the position with a new hire from outside the firm. Although firms use both internal and external hiring methods, they frequently favor insiders. Internal and external hires differ in observable characteristics (such as skill levels), as do the employers making the hiring decisions. Understanding those differences helps employers design and manage hiring policies that are appropriate for their organizations.
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Evaluating apprenticeship training programs for firms
Cost–benefit surveys of employers help design more effective training policies
Samuel Muehlemann Harald Pfeifer, March 2023Apprenticeship training programs typically last several years and require substantial investments by training firms, largely due to the associated labor costs for participants and instructors. Nevertheless, apprentices also add significant value in the workplace. One tool to measure the costs and benefits of training for firms is employer surveys, which were first introduced in the 1970s in Germany. Such cost–benefit surveys (CBS) help to better understand a firm's demand for apprentices and to identify market failures. Therefore, CBS are an important tool for designing effective training policies.MoreLess -
Hours vs employment in response to demand shocksUpdated
Evaluating the labor market effects of temporary aggregate demand shocks requires analyzing both employment and hours of work
Robert A. Hart, February 2023The responses of working hours and employment levels to temporary negative demand shocks like those caused by the Great Recession in 2007–2008 and the Covid-19 pandemic in 2020–2022 have shown that consideration of both is important. Workers’ desired rises in working hours in times of recession also serve to modify the standard measure of unemployment. During Covid-19, both jobs and earnings were temporarily protected among workers forced into short-time work schemes, providing a useful comparison with the provision of improved unemployment insurance to unemployed workers at that time.MoreLess -
Air pollution and worker productivityUpdated
Higher levels of air pollution reduce worker productivity, even when air quality is generally low
Matthew Neidell Nico Pestel, February 2023Environmental regulations are typically considered to be a drag on the economy. However, improved environmental quality may actually enhance productivity by creating a healthier workforce. Evidence suggests that improvements in air quality lead to improvements in worker productivity at the micro level across a range of sectors, including agriculture, manufacturing, and the service sectors, as well as at more aggregate macro levels. These effects also arise at levels of air quality that are below pollution thresholds in countries with the highest levels of environmental regulation. The findings suggest a new approach for understanding the consequences of environmental regulations.MoreLess -
Temperature, productivity, and income
Rising temperatures due to climate change could dampen productivity growth for decades
Olivier Deschenes, February 2023Climate change is rapidly deteriorating environmental conditions through droughts and floods, hurricanes, wildfires, rising temperatures, and more frequent and longer heatwaves. A growing literature has shown how higher temperatures reduce worker productivity and economic output. These effects are more pronounced in poorer countries and in climate-exposed economic sectors like agriculture, construction, and manufacturing. The development of new technologies that mitigate exposure to heat among workers, combined with better temperature control in the workplace, will be essential to reduce the economic burden of climate change.MoreLess -
Female poverty and intrahousehold inequality in transition economiesUpdated
An unequal distribution of resources within the family is a special concern for female poverty
Luca Piccoli, February 2023向市场经济过渡是伴随着period of greater economic uncertainty. Women are likely to suffer substantial disadvantages from this uncertainty compared to men as they are, for example, more likely to lose their job. This not only implies a monetary loss for the entire family, but also degrades female bargaining power within the household, possibly further aggravating their well-being. When intrahousehold inequality—an unequal distribution of resources among family members—exists, female poverty might be significantly larger than what can be deduced using standard household-based poverty measures.MoreLess -
Covid-19 and the youth-to-adult unemployment gap
Is the youth labor market bearing the brunt of the pandemic?
Francesco Pastore, January 2023The Covid-19 pandemic has produced unprecedented negative effects on the global economy, affecting both the demand and supply side. Its consequences in terms of job losses have been important in many European countries. A large number of firms have been forced to dismiss at least part of their workforce or to close down all together. Considering that young people are usually penalized more than their adult counterparts during economic crises due to the so-called “last-in-first-out” principle, it is worthwhile to evaluate if the youth will also end up paying the highest price during this pandemic-induced recession.MoreLess -
Does government spending crowd out voluntary labor and donations?Updated
There is little evidence that government spending crowds out private charitable donations of time and money
Julia Bredtmann Fernanda Martinez Flores, January 2023Private charitable contributions play an essential role in most economies. From a policy perspective, there is concern that comprehensive government spending might crowd out private charitable donations. If perfect crowding out occurs, then every dollar spent by the government will lead to a one-for-one decrease in private spending, leaving the total level of welfare unaltered. Understanding the magnitude and the causes of crowding out is crucial from a policy perspective, as crowding out represents a hidden cost to public spending and can thus have significant consequences for government policies toward public welfare provision.MoreLess -
Fertility postponement and labor market outcomesUpdated
Postponed childbearing improves women’s labor market outcomes but may reduce overall fertility
Massimiliano Bratti, January 2023The rise in the average age of women bearing their first child is a well-established demographic trend in recent decades. Postponed childbearing can have important consequences for the mothers and, at a macro level, for the country in which they live. Research has primarily focused on the effect postponing fertility has on mothers’ labor market outcomes and on the total number of children a woman has in her lifetime. Most research finds that postponing the first birth raises a mother's labor force participation and wages but may have negative effects on overall fertility, especially in the absence of supportive family-friendly policies.MoreLess -
In-plant alliances can mitigate economic crisis impactsUpdated
Decentral bargaining is an instrument to address both imminent economic crises and for increasing firm competitiveness
Lutz Bellmann Werner Widuckel, December 2022In-plant alliances are plant-specific deviations from sectoral collective agreements related to wages and working time that are intended to hold down labor costs. These agreements enable firm-level reorganizations to respond to an imminent economic crisis or to improve competitiveness. They also encourage social partners to take greater responsibility for employment issues. Both unions and works councils agree to such contracts because they see them as helpful in avoiding severe employment losses. Thus, these alliances substantially unburden public employment policy.MoreLess -
Does working from home work in developing countries?
Infrastructure constraints are major obstacles for working from home in developing countries
Mariana Viollaz, December 2022Work-from-home possibilities are lower in developing than in developed countries. Within countries, not all workers have equal chances of transitioning from the usual workplace to work-from-home. Moreover, infrastructure limitations and lack of access to certain services can limit the chances of effectively working from home. Having a home-based job can affect, positively or negatively, work–life balance, levels of job satisfaction and stress, and productivity. The differential chances of working from home may end up increasing the levels of income inequality between workers who can and those who cannot work from home.MoreLess -
Temporary migration entails benefits, but also costs, for sending and receiving countries
There are important trade-offs between temporary and permanent migration
Joseph-Simon Görlach Katarina Kuske, November 2022Many migrants do not stay in their host countries permanently. On average, 15% of migrants leave their host country in a given year, many of whom will return to their home countries. Temporary migration benefits sending countries through remittances, investment, and skills accumulation. Receiving countries benefit via increases in their prime-working age populations while facing fewer social security obligations. These fiscal benefits must be balanced against lower incentives to integrate and invest in host country specific skills for temporary migrants.MoreLess -
Incentivizing sleep?
Insufficient sleep affects employment and productivity
Joan Costa-Font, November 2022Spending time sleeping not only improves individuals’ well-being, but it can influence employment outcomes and productivity. Sleep can be disrupted by company schedules and deadlines, extended working times, and several individual and household decisions. Labor market regulation and corporate strategies should factor in the immediate effect of insufficient sleep on employee fatigue and cognitive performance, and the associated effects on employment disruption and productivity loss. Sleep can be influenced by “sleep friendly” employment regulations, technology nudges, monetary incentives, and subsidies for sleeping.MoreLess
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Feb 21, 2023
England’s RFU announces new maternity policy; Company in US fined for illegally employing children
今天的全球新闻摘要带来影响England, the US, and the UK, and discusses issues as diverse as maternity leave, child labor, and the four-day week. -
Feb 14, 2023
Cyclone Gabrielle highlights NZ inaction on climate change; Tanzanian government bans popular children’s book
今天的全球新闻摘要带来影响New Zealand, Tanzania, and the world, and discusses issues as diverse as climate change, LGBTQ rights, and women in AI. -
Feb 07, 2023
Air pollution causes chess players to make more mistakes; Businesses call for change to UK apprenticeship levy
今天的全球新闻摘要带来影响Germany, the UK, and Mexico and discusses issues as diverse as air pollution, apprenticeships, and obesity. -
Jan 31, 2023
Long Covid hurting US economy; Union support rising in UK despite strikes
今天的全球新闻摘要带来影响the USA, the UK, and France and discusses issues as diverse as long Covid, strikes, and pensions. -
Jan 24, 2023
Japan’s population crisis; Portugal to swap Cape Verde debt for environmental investment
今天的全球新闻摘要带来影响Japan, Cape Verde, and the USA and discusses issues as diverse as birth rates, environmental investment, and tech job loss. -
Jan 17, 2023
China’s population falls; UK government blocks Scottish gender bill
今天的全球新闻摘要带来影响China, the UK, and the globe and discusses issues as diverse as population decline, trans rights, and extreme wealth and poverty. -
Jan 10, 2023
Long-term illness hitting UK economy; American childhood obesity guidance revised
今天的全球新闻摘要带来影响the UK and the US and discusses issues as diverse as economic inactivity, obesity, and hybrid working.
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May 12, 2023 - May 13, 2023
SOLE Annual Meeting
Philadelphia, United States
The Society of Labor Economists will hold its Twenty-Eighth Annual Meetings May 12–13, 2023, at the Sonesta Philadelphia Rittenhouse Square.
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Jun 29, 2023 - Jul 04, 2023
24th IZA Summer School in Labor Economics
Berlin, Germany
The Summer School gives you an opportunity to learn from leading researchers about the latest advances in labor economics. In addition, the accompanying student presentations and mentoring sessions will provide a great platform for you to showcase your research and get valuable feedback.
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Jul 05, 2023 - Jul 06, 2023
25th Anniversary IZA Conference in Labor Economics
Berlin, Germany
会议将特性的关键AyşegulŞhin and Patrick Kline, as well as about 15 plenary presentations and a poster session. The conference will conclude with a panel discussion on the German labor market featuring leading policymakers and labor economists (Application deadline: March 15, 2023).
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
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