Background
- Klaus F. Zimmermann is Founding Director of IZA; Founding Editor-in-Chief of the IZA World of Labor; and Founding Editor-in-Chief of the five IZA Journals
- In April 1998, he founded the Institute for the Study of Labor (IZA) in Bonn in cooperation with the Deutsche Post Foundation and Bonn University.
- Under his directorship, the institute expanded into the largest research network in economics (over 1500 Fellows and Affiliates in more than 50 countries), with a globally leading position in the field of labor economics.
- Acting Director, April 1998 – Februar 2016
- March 1, 2016: Klaus F. Zimmermann left IZA and the network (see about IZA restructuring below).
Outstanding products have been
- IZA Discussion Paper series with about 10,000 papers in early 2016
- Global Network of 1500 Fellows and Affiliates in more than 50 countries
- IZA Prize in Labor Economics
- IZA World of Labor (created together with Alexander Kritikos as the Founding Managing Editor)
- IZA Journal series
- IZA Summer School
- IZA – Worldbank Conference on Employment and Development
- IZA – Migration Program Area
- IDSC Data Bank Center
- Zimmermann IZA Bio of February 2016.
IZA Ranking
RePEc Institution Rankings December 2015
# 1: TOP 25% Economic Institutions Germany
# 1: TOP 10% Institutions in the Economics of Human Migration
# 2: TOP 10% Worldwide Economic Institutions in Labor Economics
# 2: TOP 25% Wordwide Think Tanks
# 5: TOP 12.5% Economic Institutions Europe
# 10: TOP 10% (Worldwide) Economic Institutions
IZA Restructuring (December 15, 2015)
I had been informed about what I understood as the following, (i) research and policy advise cannot be in one hand, and (ii) IZA has been too global and should focus on Germany.
On December 15, 2015 the Deutsche Post Foundation declared (IZA Press Release of December 15, 2015):
“As part of the restructuring, the Deutsche Post Foundation will establish an additional non‐profit institution: The Behavior and Inequality Research Institute will be dedicated to behavioral economics and inequality research with a particular focus on labor market issues. At the same time, the restructured Institute for the Study of Labor (IZA) will concentrate on the future of labor, especially with regard to the design of national and international labor market policies.”
In response, in an email to the IZA network on December 15, 2016, I have written:
“The Deutsche Post Foundation has decided to restructure IZA with a quite different orientation that I cannot support. Hence, my operational role as the Director of IZA will end on March 1, 2016. I am grateful for 17 good years, during which IZA and its network was established as one of the leading organizations in labor economics around the world. Its global orientation and unique combination of academic research and policy advise has made IZA an authoritative advocate of modern evidence-based policy making. I wish to thank the staff and all the friends of IZA for great support and help over the many years.”
IZA Restructuring (November 10, 2023)
On November 10, 2023 IZA declared in a Press Release:
“Reorganization of the Deutsche Post Foundation’s research institutes
The Deutsche Post Foundation is undergoing a period of change and has decided to reorganize its research institutes. This involves changes in the strategic direction of both the IZA Institute of Labor Economics and the briq Institute on Behavior & Inequality as well as in the funding of the research institutes. As part of this transformation, the briq Institute will be integrated into IZA, and the Berlin location of IZA will be closed down.
As a consequence of these developments, the current CEO of IZA, Simon Jäger, has decided to depart from his leadership role at IZA by the end of 2023 in mutual agreement with the Deutsche Post Foundation. Both IZA and the Deutsche Post Foundation regret this decision and would like to express their gratitude to Simon Jäger for his exceptional work and his contributions to the further development of IZA.
Effective January 1, 2024, Armin Falk, the current CEO of the briq Institute, will take over the leadership of IZA.”
IZA Restructuring (November 20, 2023)
“Statement from the Deutsche Post Foundation on the future of IZA
The President of the Deutsche Post Stiftung (DPS) is seeking to address the concerns voiced by the IZA community in an open letter dated November 17, 2023.
As the signatories rightly emphasize in their letter: “IZA has a unique network with considerable and admirable achievements. IZA affiliates and fellows are legitimately proud to belong to IZA. For some of us, IZA membership dates back several decades.” We share this assessment and regard it as a dedicated call for forward-looking action.
IZA’s strength lies in its excellent global research network. The continuous development and expansion of this network is an integral part of IZA’s mission.
In times of a rapid increase in the intensity and relevance of globally shared questions and problems, IZA’s international network is more important than ever. This applies in particular to the exchange on labor market policy issues – quite literally existential issues – across national borders.
Merging IZA and briq serves this goal. The aim of this measure is to focus the available financial resources on strengthening and further developing the existing excellent global network of the two combined institutes.
In essence, we aim to further advance the remarkable achievements that our research funding has enabled over the past 25 years through the IZA network, as well as the important transfer of scientific knowledge into labor market policy practice.
We would like to express our gratitude to our international research network members for explicitly bringing the essence of IZA into full focus through their critical engagement.
Reorganization of IZA
With regard to institutional leadership, Professor Falk has asked that the DPS release him from his position as CEO of briq and withdraw his appointment to lead IZA. The DPS will comply with his request with regret and great respect for his outstanding scientific achievements and the commitment he has shown for over 20 years to the research institutes funded by the DPS.
For the background to the discussion surrounding Professor Falk, please refer to the briq statement issued on March 28, 2023 regarding the outcome of the independent investigation that led to his clearance. Please further refer to the statement by the University of Bonn, according to which he was “fully exonerated from the allegations made”.
The current CFO of IZA and briq, Martin T. Clemens, will continue as administrative director of IZA. The scientific activities in the research areas will be coordinated by the research directors.”
IZA Restructuring (February 24, 2025)
The German Post Foundation announced the decision to close down IZA on December 31, 2025 (see below). On February 25, I remarked:
“No one with some insight into the context can be surprised by this sad development. The decision to close the IZA is the consequence of a series of poor business decisions over the last decade regarding direction, personnel, and content, for which the German Post Foundation bears central responsibility.
Before that, the institute had risen over two decades to become the world’s leading institution for labor and population economics. Influential, leading, and globally networked with significant impact on national and international policymaking, especially on issues of labor market reform and migration.
Not only Bonn, but the whole of Germany and Europe are losing a prominent flagship far beyond the world of science. This is particularly painful in view of the ongoing deglobalization of the world.”
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“Strategic Realignment of the Deutsche Post Stiftung: Prioritizing Climate and Sustainability
Following the end of funding from DHL Group (formerly Deutsche Post AG), the Deutsche Post Stiftung (DPS) is undergoing a strategic realignment. Under its new name, Stiftung Globale Nachhaltigkeit (SGN), it will focus on climate, nature, and sustainability issues.
As part of this transition, DPS will become a grant-making foundation, supporting external projects and organizations through the Stiftungsfonds Umweltökonomie und Nachhaltigkeit (SUN). This means it will no longer operate its own research institutes. In this context, DPS has made the difficult decision to discontinue operations at the Forschungsinstitut zur Zukunft der Arbeit (IZA) as of December 31, 2025.
At the same time, DPS recognizes the importance of the international IZA research network, which has established itself as a leading and highly respected global hub for labor market research. To preserve this legacy, efforts are underway to explore alternative funding sources, partnerships, and organizational models for the network. The IZA Network Advisory Panel, who were not part of the decision, will be asked to assist in this. The goal is to present the results in June 2025.
DPS fully recognizes the uncertainty this transition creates for all employees at the Bonn-based institute. Individual agreements will be developed to avoid compulsory redundancies and to help minimize the impact on employees’ careers and livelihoods.
The foundation expresses its deep appreciation for the exceptional dedication of all researchers and staff who have shaped IZA over the years. Their work has not only advanced research and international collaboration in labor economics but has also provided valuable contributions to labor market and social policy debates worldwide. Looking back on more than 25 years of achievements supported by the private funding and general leadership of DPS, we are incredibly proud of what has been accomplished. As we move forward, we are committed to supporting efforts to ensure that the spirit and impact of this research community continues into the future.
The President and the Board of Trustees“
*****
“From: Mark Fallak
Date: Mon, Feb 24, 2025 at 4:33 PM
Subject: Strategic Shift at DPS: Implications for IZA’s Future
Dear IZA Network Members,
We wish we had different news to share, but we must inform you of major changes affecting IZA’s future.
As you may recall, changes in the funding structure of the Deutsche Post Foundation (DPS) led to significant adjustments last year. Since then, various paths have been explored to ensure the long-term sustainability of IZA.
The DPS Board of Trustees has now concluded that maintaining a full-scale research institute—with high academic standards, a strong in-house team, and a vibrant program of events and initiatives—is not financially viable in the long term with the available funds.
As a result, DPS announced today the difficult decision to close the Forschungsinstitut zur Zukunft der Arbeit (IZA) as of December 31, 2025. This decision is part of a broader strategic shift, as the foundation consolidates its funding activities and transitions fully toward its focus on climate, nature, and sustainability. For further details on the reorganization and renaming of the foundation, please refer to the official DPS Statement by the President and the Board of Trustees.
This decision has the greatest immediate impact on our local team in Bonn. IZA management is fully committed to supporting each employee through this transition, working on individual solutions to help minimize the impact on their careers and livelihoods.
At the same time, this shift has implications for the global IZA research community. DPS has acknowledged the network’s significance and the vital role it has played in advancing labor economics. To preserve this legacy, efforts are underway to explore ways to continue or adapt the network’s activities through alternative funding and partnerships. The IZA Network Advisory Panel, who were not part of the decision, will be asked to assist in this. The goal is to present results in June 2025.
For now, we hope all IZA activities planned for this year will proceed as scheduled. The IZA Discussion Paper series will also continue, ensuring the ongoing dissemination of high-quality research.
We know this transition is unsettling for all of us, and we understand that it raises many questions and concerns. While we continue to work through the details, we appreciate your patience and understanding during this period. We will keep you informed and share updates as soon as they become available.
Finally, we want to express our deepest gratitude to everyone who has contributed to IZA’s success over the years. Your dedication, expertise, and collaboration have been the foundation of everything we have achieved.
Thank you for being an integral part of the IZA community. Together, we hope to preserve the spirit and contributions of the IZA network as we adapt to these changes.
With best regards,
Mark Fallak
(on behalf of the Deutsche Post Foundation)
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Mark Fallak
Head of Communications
IZA – Institute of Labor Economics”
