IDEAS home Printed from https://ideas.repec.org/p/iza/izapps/pp187.html
   My bibliography  Save this paper

Job Retention Schemes during COVID-19: A Review of Policy Responses

Author

Listed:
  • Eichhorst, Werner

    (IZA)

  • Marx, Paul

    (University of Bonn)

  • Rinne, Ulf

    (IZA)

  • Brunner, Johannes

    (IZA)

Abstract

This policy brief provides an update on job retention policies in a sample of 20 countries representing the main world regions as well as the diverse types of job retention schemes, in particular short-time work, furlough and wage subsidy schemes as they have been implemented in response to the COVID-19 pandemic. We show the diversity of these policies as well as the available information about their (re-)design as the pandemic evolved up to the most recent period. The policy brief raises main issues regarding the implementation and adaptation of job retention policies and illustrated this with four case studies.

Suggested Citation

  • Eichhorst, Werner & Marx, Paul & Rinne, Ulf & Brunner, Johannes, 2022. "Job Retention Schemes during COVID-19: A Review of Policy Responses," IZA Policy Papers 187, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp187
    as

    Download full text from publisher

    File URL: https://docs.iza.org/pp187.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pierre Cahuc & Francis Kramarz & Sandra Nevoux, 2018. "When Short-Time Work Works," SciencePo Working papers hal-03393127, HAL.
    2. Tito Boeri & Herbert Bruecker, 2011. "Short-time work benefits revisited: some lessons from the Great Recession [‘Reversed roles? Wage and employment effects of the current crisis’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 26(68), pages 697-765.
    3. Balleer, Almut & Gehrke, Britta & Lechthaler, Wolfgang & Merkl, Christian, 2016. "Does short-time work save jobs? A business cycle analysis," European Economic Review, Elsevier, vol. 84(C), pages 99-122.
    4. Cahuc, Pierre & Nevoux, Sandra, 2017. "Inefficient Short-Time Work," IZA Discussion Papers 11010, Institute of Labor Economics (IZA).
    5. Konle-Seidl, Regina, 2020. "Kurzarbeit in Europa: Die Rettung in der aktuellen Corona-Krise?," IAB-Forschungsbericht 202004_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Katharine G. Abraham & Susan N. Houseman, 1994. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," NBER Chapters, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 59-94, National Bureau of Economic Research, Inc.
    7. repec:iab:iabfob:202004(de is not listed on IDEAS
    8. Cahuc, Pierre & Carcillo, Stéphane, 2011. "Is Short-Time Work a Good Method to Keep Unemployment Down?," IZA Discussion Papers 5430, Institute of Labor Economics (IZA).
    9. Pierre Cahuc, 2019. "Short-time work compensation schemes and employment," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-11, May.
    10. repec:oup:ecpoli:v:26:y:2011:i:68:p:697-765 is not listed on IDEAS
    11. Maani, Sholeh A., 2021. "COVID-19 Government Responses to Labour Market Disruptions and Economic Impacts: The New Zealand Model," IZA Discussion Papers 14929, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert A. Hart, 2023. "Hours vs employment in response to demand shocks," IZA World of Labor, Institute of Labor Economics (IZA), pages 393-393, February.
    2. Marx, Paul & Eichhorst, Werner & Rinne, Ulf & Brunner, Johannes, 2022. "Income Support for Non-covered Workers during COVID-19: A Review of Policy Responses," IZA Policy Papers 189, Institute of Labor Economics (IZA).
    3. Sher Singh Verick, 2023. "The Challenge of Youth Employment: New Findings and Approaches," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(2), pages 421-437, June.
    4. Natalia Bermudez & Muriel Dejemeppe & Giulia Tarullo, 2023. "Theory and Empirics of Short-Time Work: A Review," LIDAM Discussion Papers IRES 2023018, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. Bellmann, Lisa & Bellmann, Lutz & Hübler, Olaf, 2023. "Labour Mobility in German Establishments during the COVID-19 Crisis: Panel Data Analyses with Special Reference to Short-Time Work and Working from Home," IZA Discussion Papers 15935, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sandra NEVOUX, 2019. "Short-time work is an efficient job-saving policy [L’activité partielle constitue une politique efficace de sauvegarde de l’emploi]," Bulletin de la Banque de France, Banque de France, issue 225.
    2. Florentino Felgueroso & Marcel Jansen, 2020. "Una valoraciónde los ERTEpara hacer frente a la crisis del COVID-19 en basea la evidencia empírica y desde una perspectiva comparada," Policy Papers 2020-06, FEDEA.
    3. Tito Boeri & Pierre Cahuc, 2022. "Labor Market Insurance Policies in the XXI Century," SciencePo Working papers Main hal-03878719, HAL.
    4. Marlon R. Tracey & Solomon W. Polachek, 2020. "Heterogeneous Layoff Effects of the US Short‐Time Compensation Program," LABOUR, CEIS, vol. 34(4), pages 399-426, December.
    5. Ulrike Huemer & Rainer Eppel & Marion Kogler & Helmut Mahringer & Lukas Schmoigl & David Pichler, 2021. "Effektivität von Instrumenten der aktiven Arbeitsmarktpolitik in unterschiedlichen Konjunkturphasen," WIFO Studies, WIFO, number 67250, April.
    6. Reamonn Lydon & Thomas Y. Mathä & Stephen Millard, 2019. "Short-time work in the Great Recession: firm-level evidence from 20 EU countries," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-29, December.
    7. repec:hal:wpspec:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    8. repec:hal:wpspec:info:hdl:2441/68ufmnnh3j9vmblf03huqt18qe is not listed on IDEAS
    9. Julio G. Fournier Gabela & Luis Sarmiento, 2020. "Kurzarbeit and Natural Disasters: How Effective Are Short-Time Working Allowances in Avoiding Unemployment?," Discussion Papers of DIW Berlin 1909, DIW Berlin, German Institute for Economic Research.
    10. Cahuc, Pierre & Kramarz, Francis & Nevoux, Sandra, 2021. "The Heterogeneous Impact of Short-Time Work: From Saved Jobs to Windfall Effects," CEPR Discussion Papers 16168, C.E.P.R. Discussion Papers.
    11. Garcia-Clemente, Javier & Rubino, Nicola & Congregado, Emilio, 2022. "Evaluating the effects of short and medium-term temporary work reduction schemes: the case of Spain’s ERTEs during the COVID-19 outbreak," MPRA Paper 114504, University Library of Munich, Germany.
    12. Cahuc, Pierre & Nevoux, Sandra, 2017. "Inefficient Short-Time Work," IZA Discussion Papers 11010, Institute of Labor Economics (IZA).
    13. Julien Albertini & Xavier Fairise & Arthur Poirier & Anthony Terriau, 2022. "Short-Time Work Policies During the Covid-19 Pandemic," Annals of Economics and Statistics, GENES, issue 146, pages 123-172.
    14. Daniel Kopp & Michael Siegenthaler, 2021. "Short-Time Work and Unemployment in and after the Great Recession [Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium]," Journal of the European Economic Association, European Economic Association, vol. 19(4), pages 2283-2321.
    15. repec:hal:spmain:info:hdl:2441/68ufmnnh3j9vmblf03huqt18qe is not listed on IDEAS
    16. Oana CALAVREZO & Lewis HOUNKPEVI & Florence JOURNEAU & Marie-Hélène NGUYEN, 2020. "L’utilisation de l’activité partielle durant la crise de la Covid-19 : une analyse empirique entre mars et mai 2020," LEO Working Papers / DR LEO 2804, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    17. Volker Meier, 2018. "Short-time Work Subsidies in a Matching Model," CESifo Working Paper Series 7281, CESifo.
    18. repec:hal:spmain:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    19. Bermudez, Natalia & Dejemeppe, Muriel & Tarullo, Giulia, 2023. "Theory and Empirics of Short-Time Work: A Review," GLO Discussion Paper Series 1348, Global Labor Organization (GLO).
    20. Dengler, Thomas & Gehrke, Britta, 2021. "Short-Time Work and Precautionary Savings," IZA Discussion Papers 14329, Institute of Labor Economics (IZA).
    21. Pierre Cahuc & Francis Kramarz & Sandra Nevoux, 2021. "The Heterogeneous Impact of Short-Time Work: From Saved Jobs to Windfall Effects," SciencePo Working papers hal-03602410, HAL.
    22. Bruno Ducoudre & Pierre Madec, 2020. "Évaluation au 6 mai 2020 de l'impact économique de la pandémie de COVID-19 et des mesures de confinement sur le marché du travail en France," SciencePo Working papers Main hal-03401434, HAL.
    23. Pierre Cahuc & Sandra Nevoux, 2019. "Inefficient Short-Time Work," SciencePo Working papers hal-03393097, HAL.
    24. Victoria Osuna & J. García-Pérez, 2015. "On the Effectiveness of Short-time Work Schemes in Dual Labor Markets," De Economist, Springer, vol. 163(3), pages 323-351, September.

    More about this item

    Keywords

    survey; COVID-19; youth; gender equality; economic sectors; economic recovery; rapid assessment; skills; education; employment policy; decent work; work;
    All these keywords.

    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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izapps:pp187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.