Her most recent areas of focus include how the welfare state affects productivity as well as jobs, and what effect immigration flows have on the labour market. She has developed an indicator for employment-protection legislation that covers all of the OECD countries since 1950, and a new indicator for the generosity of unemployment benefits, called the net reservation wage, for the same countries and period. As with her research, Prof Allard’s teaching of economic environment and international economics is always done in reference to what is happening in the real world.