Good Jobs Economics: Incentives and Policies

Many advanced economies report low unemployment and tight labour markets yet continue to grapple with economic inequality and a scarcity of good jobs. A sizable share of workers remains stuck in low-paying positions with limited chances for career advancement. This research program examines multiple dimensions of good job creation, from the implications of part-time work to the influence of labour market institutions such as the minimum wage. It analyses whether workers fully account for the long-term consequences of part-time employment and discusses when governments should encourage or discourage these arrangements—especially given their potential to alleviate gender disparities in access to higher-paying positions. The program also explores the role of the European Union’s free movement of labour in expanding good job opportunities for Eastern European immigrants. Specifically, it investigates how Hungarian workers fare after migrating to Austria, focusing on wage progression and skill development—both for those who assimilate and those who eventually return to Hungary. Another central component explores the role of a prominent labour market policy, the minimum wages, in fostering good job creation. While higher minimum wages can boost pay, they may also restrict career growth and flatten wage trajectories for low-wage workers. By weighing these benefits and drawbacks, the research will gauge the overall contribution of the policy to good job creation. To achieve these objectives, the program draws on newly gathered survey data and previously untapped administrative sources, leveraging significant policy variations and cutting-edge empirical approaches. Ultimately, it aims to untangle the forces behind good job creation—those that offer meaningful career progression and rising wages—and to evaluate the effectiveness of government interventions in addressing these persistent challenges.