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Varða - The Labor Market Research Institute was founded in May 2020 by the Confederation of Icelanders and BSRB.

The basis for the establishment of a special research institute in the field of the labor market is reflected in the joint goals of ASÍ and BSRB to create a broad knowledge of people's living conditions, to build a bridge between the academic community and the labor movement, as well as to encourage independent research that has significance for workers.

An agreement on the establishment of a research institute in the field of the labor market was signed in October 2019 when Drífa Snædal, president of ASÍ, and Sonja Ýr Þorbergsdóttir, chairperson of BSRB, signed an agreement to that effect. Subsequently, a naming competition was held for a suitable name for the new organization. A total of four hundred proposals were received from 115 individuals. Elínar Marta Ásgeirsdóttir's proposal, Varða - Research Institute of the Labor Market, was chosen as the best name.

Varða conducts diverse research concerning people's living standards in a wide context and also provides research services for member associations ASÍ and BSRB.

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