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Labor Market Policies

Labor market policies and programs shape the rules governing the dynamics between employers and employees

Labor market policies and programs help shape outcomes for low- and moderate-income workers. For example, rules about occupational licensure and non-compete contracts can affect access to jobs. Workforce services programs and unemployment insurance can support workers while they look for employment. We conduct research to provide leaders with high-quality information as they make decisions that matter for workers, employers, and the overall labor market. Our focus is on the impacts of both long-established labor market policies and new initiatives.

Minneapolis Fed research on the City of Minneapolis Guaranteed Basic Income pilot

In 2022, the City of Minneapolis began a guaranteed basic income pilot that included $500 monthly payments to 200 recipients over a two-year period. To learn what effects this pilot may have on its participants, the city selected the Minneapolis Fed to conduct a rigorous evaluation through a randomized controlled trial. The Minneapolis Fed’s role in this project is as a neutral, trusted research body working in the public interest to study policies affecting labor market dynamics in low- and moderate-income communities. Research and insights are intended to inform policymakers, researchers, and others who seek to understand the potential impacts and tradeoffs of basic income programs.

Project resources:

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A young male electrician wearing an olive green tee shirt and gray baseball cap is seen from the side as he installs an electrical box on the exterior of a house. The house has sage green siding with white trim and stone accents. The electrician's metal ladder is visible in the background, resting against the side of the house.
What new data tell us about the growth of occupational licensure
Staff Reports
Final Report for the Enhanced Services Pilot of the Montana Reemployment Services and Eligibility Assessment Program
Staff Reports
The Early Labor Market Impacts of Minnesota’s 2023 Non-Compete Enforcement Ban
Inside a metal fabrication workshop, a male worker leans forward and holds a long, narrow sheet of steel in place on one end of a large metal press. The machine and the worker are seen in profile, with the worker wearing a black jacket, gray cap, gray protective gloves, and safety glasses. A second worker can be seen out of focus in the background, securing the other end of the steel panel.
Who gets unemployment benefits for shared work?
Collage image including an overhead image of workers at a table and an image of a puzzle
Cutting Hours Instead of Cutting Jobs: Shared Work Within the Unemployment Insurance System
In a brightly lit office space, two women, cropped mostly out of view except for their hands, sit across from one another at a wooden desk and gesture over a folder of documents that lies open on the desktop. The woman in the foreground holds one of the documents up for the other woman to review and sign.
How litigation shapes non-compete contracts’ effects on workers