What is IZA? Some information: LINK
The German Post Foundation has just announced the decision to close down the research institute IZA in Bonn on December 31, 2025. See the details below.
“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.”
Klaus F. Zimmermann
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“Niemand mit etwas Einsicht in die Zusammenhänge kann von dieser traurigen Entwicklung überrascht sein. Die Entscheidung, das IZA zu schließen, ist die Konsequenz einer Reihe von unternehmerischen Fehlentscheidungen des letzten Jahrzehnts über Ausrichtung, Personal und Inhalte, für die die Poststiftung die zentrale Verantwortung trägt.
Zuvor war das Institut über zwei Jahrzehnte zur weltweit führenden Institution der Arbeits- und Bevölkerungsökonomie aufgestiegen. Einflussreich, tonangebend und weltweit vernetzt mit auch großem Einfluss auf die nationale und internationale Politik, insbesondere bei Fragen der Arbeitsmarktreformen und der Migration.
Nicht nur Bonn, ganz Deutschland und Europa verliert ein prominentes Aushängeschild weit über die Wissenschaft hinaus. Dies ist angesichts der fortschreitenden Deglobalisierung der Welt besonders schmerzlich.”
Klaus F. Zimmermann
German Post Foundation (Deutsche Post Stiftung, DPS) Messages
“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“
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“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”
