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Did job retention schemes save jobs during the COVID‐19 pandemic? Firm‐level evidence from Latvia

Author

Listed:
  • Konstantīns Beņkovskis
  • Oļegs Tkačevs
  • Kārlis Vilerts

Abstract

This study investigates the short‐ to medium‐term effects on employment of a job retention scheme (JRS) implemented during the COVID‐19 pandemic. Employing a unique Latvian firm‐level dataset, the study reveals a sustained positive impact of JRS participation on employment. Firms that participated in the first‐wave idle‐time allowance programme sustained higher employment levels relative to non‐participants. These effects were observed on both the extensive and intensive margins. The calculations suggest that the wage benefits of the JRS outweighed the costs, with the first‐wave idle‐time allowance programme's costs estimated between 2,260 and 5,950 euros per job–year saved.

Suggested Citation

  • Konstantīns Beņkovskis & Oļegs Tkačevs & Kārlis Vilerts, 2026. "Did job retention schemes save jobs during the COVID‐19 pandemic? Firm‐level evidence from Latvia," Scandinavian Journal of Economics, Wiley Blackwell, vol. 128(1), pages 73-103, January.
    • Handle: RePEc:bla:scandj:v:128:y:2026:i:1:p:73-103
    DOI: 10.1111/sjoe.12588
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    Cited by:

    1. is not listed on IDEAS
    2. Konstantins Benkovskis & Olegs Tkacevs & Karlis Vilerts, 2024. "Understanding How Job Retention Schemes Reshape the Within-Occupation Skill Profile of Employees within Firms," Working Papers 2024/02, Latvijas Banka.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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