Job retention schemes in perspective: lessons learnt and insights for future policys
References
- Altomonte, C., L. Fontagné, M. Demertzis and S. Müller (2021), COVID-19 financial aid and productivity: has support been well spent? Bruegel, Policy Brief, Issue No. 21/21, https://www.bruegel.org/policy- brief/covid-19-financial-aid-and-productivity-has-support-been-well-spent.
- Shkhar A. and M. Chi Dao (2021), The Effectiveness of Job-Retention Schemes: COVID-19 Evidence from the German States, IMF Working Paper, WP/21/242, https://www.imf.org/en/Publications/WP/Issues/2021/10/01/The-Effectiveness-of-Job-Retention- Schemes-COVID-19-Evidence-From-the-German-States-474182.
- Dan, A., A. Charlton and A. Moore (2021), COVID-19, productivity and reallocation: Timely evidence from three OECD countries, OECD Economics Department Working Paper, No. 1676, https://www.oecd.org/en/publications/covid-19-productivity-and-reallocation-timely-evidence-from- three-oecd-countries_d2c4b89c-en.html.
- Balleer, A. (2024), Job Retention Schemes, Economic Policy beyond the Pandemic in the Nordic Countries. Lars Calmfors & Nora Sánchez Gassen (Eds.). Nordregio Report 2024:12, https://nordregio.org/publications/economic-policy-beyond-the-pandemic-in-the-nordic-countries/.
- Balleer, A., B. Gehrke, W. Lechthaler and C. Merkl (2016), Does Short-Time Work Save Jobs? A Business Cycle Analysis, European Economic Review, 84, 99-122, https://www.sciencedirect.com/science/article/pii/S0014292115000720.
- Barrero, J. M., N. Bloom and S. J. Davis. (2020), Covid-19 is also a Reallocation Shock, NBER Working Paper, No. 27137, https://www.nber.org/system/files/working_papers/w27137/w27137.pdf.
- Benkovskis, K., O. Tkačevs and K. Vilerts (2004), Understanding How Job Retention Schemes Reshape the Within-Occupation Skill Profiles of Employees within Firms, Latvijas Banka, Working Paper, No. 2/2024, https://datnes.latvijasbanka.lv/papers/WP_2-2024.pdf.
- Bennaars, H. (2020), Covid-19 and labour law in the Netherlands, European Labour Law Journal, 11(3), 324-331, https://journals.sagepub.com/doi/full/10.1177/2031952520934587.
- Ter Haar, B. and H. Bennaars (2021), The Netherlands and COVID-19 measures in the field of labour law, Cielo Laboral, https://www.cielolaboral.com/wp- content/uploads/2021/04/terhaar_bennaars_noticias_cielo_n3_2021.pdf.
- Bighelli, T., T. Lalinsky and J. Vanhala (2023), Cross-country evidence on the allocation of COVID-19 government subsidies and consequences for productivity, Journal of the Japanese and International Economies, 68, https://www.sciencedirect.com/science/article/pii/S0889158323000011.
- Boeri, T. and H. Bruecker (2011), Short-time work benefits revisited: some lesson from the Great Recession, Economic Policy, 26(68), 697-765, https://academic.oup.com/economicpolicy/article/26/68/697/2918385.
- Boeri, T. and P. Cahuc (2023), Labor Market Insurance Policies in the Twenty-First Century, Annual Review of Economics, 15, https://www.annualreviews.org/content/journals/10.1146/annurev-economics- 082322-035621.
- Brey, Björn & Matthias S. Hertweck. (2020). The Extension of Short-Time Work Schemes During the Great Recession: A Story of Success?, Macroeconomic Dynamics. 24(2), 360-402, https://www.cambridge.org/core/journals/macroeconomic-dynamics/article/abs/extension-of-shorttime- work-schemes-during-the-great-recession-a-story-of- success/415C8EB0A0D2F8DB9E5F7CCA4CB00CFD.
- Cahuc, P. (2019), Short-time work compensation schemes and employment, IZA World of Labour 2019: 11, doi: 10.15185/izawol.11.v2.
- Cantillon, B., M. Seeleib‐Kaiser and R. Van der Veen (2021), The COVID‐19 crisis and policy responses by continental European welfare states, Social Policy & Administration 55.2 (2021), 326-338. https://doi.org/10.1111/spol.12715.
- Carrasco, R., V. Hernanz and J. F. Jimeno (2024), Employment Protection by Job Retention Schemes in a Segmented Labour Market, Estudios sobre la Economía Española, 2024/25: https://documentos.fedea.net/pubs/eee/2024/eee2024-25.pdf.
- Cheng, W., P. Carlin, J. Carroll, S. Gupta, F. Lozano Rojas, L. Montenovo, D. Thuy Nguyen, M. Schmutte (2020), Back to Business and (Re)Employing Workers? Labour Market Activity during State COVID-19 Reopenings, NBER Working Paper, No. 27419, https://www.nber.org/papers/w27419.
- Corti, F., A. Ounnas and T. Ruiz De La Ossa (2023), Job Retention Schemes Between the Great Recession and the Covid-19 Crises: Does the Institutional Design Affect the Take Up? An EU-27 cross- country comparison, CEPS In-Depth Analysis, https://www.ceps.eu/ceps-publications/job-retention- schemes-between-the-great-recession-and-the-covid-19-crises/.
- Cremers, J. (2021), Job Retention Schemes in Europe: The Netherlands, ETUI Working Paper, 2021.07, https://www.etui.org/sites/default/files/2021-09/Job%20retention%20schemes%20in%20Europe%20-
- %20Netherlands_2021.pdf.
- Davidson, C. and S. A. Woodbury (1990), The Displacement Effect of Reemployment Bonus Programs, Upjohn Institute Working Paper, No. 90-02. Kalamazoo, MI: W. E. Upjohn Institute for Employment Research, https://doi.org/10.17848/wp90-02.
- Drahokoupil, J. and T. Müller (2021), Job retention schemes in Europe: a lifeline during the Covid-19 pandemic, ETUI Research Paper, No. 2021.07, http://dx.doi.org/10.2139/ssrn.3931230.
- Duggan, M., A. C. Johnson & A. Guo. (2022), Experience Rating as an Automatic Stabilizer, NBER Working Paper, No. 30651, http://www.nber.org/papers/w30651.
- Ebbinghaus, B., and L. Lehner (2022), Cui bono–business or labour? Job retention policies during the COVID-19 pandemic in Europe, Transfer: European Review of Labour and Research, 28(1), 47-64, https://doi.org/10.1177/1024258922107915.
- Economic Policy Institute (EPI) (2007), Subsidizing Downward Mobility: The problem with the Democrat’s proposed wage insurance program, Commentary, 4 May 2007, https://www.epi.org/publication/webfeatures_viewpoints_downward_mobility/.
- Efstathiou, K., Mathä, T.Y., Veiga, C. et al. Short-time work in Luxembourg: evidence from a firm survey. J Labour Market Res 52, 14 (2018). https://doi.org/10.1186/s12651-018-0247-7
- Eichhorst, W., P. Marx, U. Rinne and J. Brunner (2022), Policy sequences during and after Covid-19: A review of labour market policy patterns, https://www.iza.org/publications/pp/186/policy-sequences- during-and-after-covid-19-a-review-of-labour-market-policy-patterns.
- Eurofound (2021), COVID-19: Implications for employment and working life, COVID-19 series, Publications Office of the European Union, Luxembourg, doi:10.2806/160624.
- Eurofound (2024), Weathering the crisis: How job retention schemes preserved employment and incomes during the pandemic, Publications Office of the European Union, Luxembourg, doi:10.2806/7896442.
- European Commission: Directorate-General for Employment, Social Affairs and Inclusion, Labour market and wage developments in Europe – Annual review 2021, Publications Office of the European Union, 2021, https://data.europa.eu/doi/10.2767/066622.
- Fackler, D., Stegmaier, J. and Upward, R. (2023), Safety net or helping hand? The effect of job search assistance and compensation on displaced workers, IWH Discussion Papers, No. 18/2023, Halle Institute for Economic Research (IWH), Halle (Saale), https://nbn-resolving.de/urn:nbn:de:gbv:3:2- 988488.
- Fedotenkov, I., V. Kvedaras, and M. Sanchez-Martinez (2022), Employment protection and labour productivity growth in the EU: Skill-specific effects during and after the Great Recession, JRC Working Papers in Economics and Finance, No. 2022/4, European Commission, Ispra.
- García-Cabo, J., A. Lipińska and G. Navarro. (2023), Sectoral shocks, reallocation, and labor market policies, European Economic Review, 2023(156), https://www.sciencedirect.com/science/article/pii/S001429212300123X.
- Giupponi, G., C. Landais and A. Lapeyre (2022), Should we insure workers or jobs during recessions?, Journal of Economic Perspectives, 36(2), 29-54, doi: 10.1257/jep.36.2.29.
- Giupponi, G., and C. Landais (2023), Subsidizing labour hoarding in recessions: the employment and welfare effects of short-time work, Review of Economic Studies, 90(4), 1963-2005, https://doi.org/10.1093/restud/rdac069.
- Greve, B., P. Blomquist, B. Hvinden and M. Van Gerven (2021), Nordic welfare states—still standing or changed by the COVID‐19 crisis?, Social Policy & Administration, 55(2), 295-311, https://doi.org/10.1111/spol.12675.
- Harasztosi, P., L. Maurin, R. Pál, D. Revoltella and W. van der Wielen (2022), Firm-level policy support during the crisis: So far, so good?, International Economics, 171, 30-48, https://www.sciencedirect.com/science/article/abs/pii/S2110701722000312.
- Hijzen, A., and D. Venn (2011), The role of short-time work schemes during the 2008-09 recession, OECD Social, Employment and Migration Working Papers, No. 115, OECD Publishing, Paris, https://doi.org/10.1787/5kgkd0bbwvxp-en.
- Hofer, H., A. Weber and R. Winter-Ebmer (2013), Labor market policy in Austria during the Crises, Johannes Kepler University of Linz, Working Paper, No. 1326, http://www.econ.jku.at/papers/2013/wp1326.pdf.
- Hyman, B., G. Brian, K. Kovak and A. Leive (2024), Wage Insurance for Displaced Workers, NBER Working Paper, No. 32464, https://www.nber.org/papers/w32464.
- Jongen, E. and P. Verstaraten (2020), IZA COVID-19 Crisis Response Monitoring: Netherlands (June 2020), Short-Run Labor Market Impacts of COVID-19, Initial Policy Measures and Beyond, IZA – Institute of Labor Economics, https://ftp.iza.org/report_pdfs/iza_report_98.pdf.
- Kletzer, L. G. and R. E. Litan. (2001), A Prescription to Relieve Worker Anxiety, Brookings Policy Brief, No. 73, https://www.brookings.edu/articles/a-prescription-to-relieve-worker-anxiety/.
- Kozeniauskas, N., P. Moreira and C. Santos (2022), On the cleaning effect of recessions and government policy: Evidence from Covid-18, European Economic Review, 144, https://www.sciencedirect.com/science/article/pii/S0014292122000411.
- Lafuente, C., and A. Ruland (2022), Short-Time Work schemes and labour market flows in Europe during COVID, European University Institute, Working Paper, ECO 2022/02, https://cadmus.eui.eu/handle/1814/74841.
- Lalinsky, T., J. Meriküll and P. Lopez-Garcia. (2024), Productivity-enhancing reallocation during the Covid-19 pandemic, European Central Bank, Working Paper, No. 2947, https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2947~339ed63d7b.en.pdf.
- LaLonde, R. J. (2007), The Case for Wage Insurance, Council on Foreign Relation, Council Special Report 30, https://www.cfr.org/sites/default/files/pdf/2007/06/WageInsuranceCSR.pdf.
- Lam, W. R., and A. Solovyeva (2023), How effective were job-retention schemes during the COVID-19 pandemic? A Microsimulation Approach for European Countries, International Monetary Fund, https://doi.org/10.5089/9798400229985.001.
- Landais, C. and G. Giupponi. (2020), “Building effective short-time work schemes for the COVID-19 crisis”, VoxEU, 1 April 2020, https://cepr.org/voxeu/columns/building-effective-short-time-work- schemes-covid-19-crisis.
- Marx, P., Eichhorst, W., Rinne, U., & Brunner, J. (2022), Income support for non-covered workers during COVID-19: A review of policy responses, https://www.ilo.org/publications/income-support-non-covered- workers-during-covid-19-review-policy-responses.
- McHugh, R. and C. McKenna (2016), Is Wage Insurance a Worthwhile Option for Displaced Workers?, National Employment Law Project (NELP), 10 February 2016, https://www.nelp.org/is-wage-insurance- a-worthwhile-option-for-displaced-workers/.
- Meriküll, J. and A. Paulus (2022), Were Jobs Saved at the Cost of Productivity in the Covid-19 crisis?, Bank of Estonia, Working Paper, No. 2022/5, https://haldus.eestipank.ee/sites/default/files/publications/2022/06/EP_5_2022_v2.pdf.
- Meriküll, J. and A. Paulus (2023), The impact of the Covid-19 job retention support on employment,
- Economics Letters, 222, https://www.sciencedirect.com/science/article/pii/S0165176522004372.
- Modhurima, O. (2023), Creative destruction in Slovak labour market: Impact of COVID-19, National Bank of Slovakia, Policy Brief, No. 08/2023, https://nbs.sk/en/newsletter/policy-brief-no-8-2/.
- OECD (2018), The role of collective bargaining systems for good labour market performance, OECD Employment Outlook 2018, OECD Publishing, Paris, https://dx.doi.org/10.1787/empl_outlook-2018-7-en.
- OECD (2020a), Job retention schemes during the COVID-19 lockdown and beyond, OECD Policy Responses to Coronavirus (COVID-19), OECD Publishing, Paris, https://doi.org/10.1787/0853ba1d-en.
- OECD (2020b), OECD Employment Outlook 2020: Worker Security and the COVID-19 Crisis, OECD Publishing, Paris, https://doi.org/10.1787/1686c758-en.
- OECD (2022), Riding the waves: Adjusting job retention schemes through the COVID-19 crisis, OECD Policy Responses to Coronavirus (COVID-19), OECD Publishing, Paris, https://doi.org/10.1787/ae8f892f-en.
- OECD/European Commission (2025), Counterfactual impact evaluations of active labour market policies: Lessons from using linked administrative data, OECD Publishing, Paris, https://doi.org/10.1787/bea7860e-en.
- PwCNetherlands(2020),Details of the extended NOW scheme, 25 June 2020, https://www.pwc.nl/en/insights-and-publications/tax-news/enterprises/details-of-the-extended-now-scheme.html.
- RSM (2021), The NOW-4 (sixth application period) in outline, 2 August 2021: https://www.rsm.global/netherlands/en/news/now-4-sixth-application-period-outline.
- Sagel, S. and B. Klopper (2020), NOW-3: Dutch Government Continues Support for Employers, but on Less Generous Terms, De Brauw, Blackstone, Westbroek: Legal articles, 15 October 2020, https://www.debrauw.com/articles/now-3-dutch-government-continues-support-for-employers-but-on-less-generous-terms.
- Scarpetta, S., M. Pearson, A. Hijzen and A. Salvatori (2020), Job retention schemes during the COVID-19 lockdown and beyond, OECD Policy Paper, https://www.oecd.org/en/publications/job-retention-schemes-during-the-covid-19-lockdown-and-beyond_0853ba1d-en.html.
- Schumpeter, J. A. (1942), Capitalism, Socialism and Democracy, Harper & Row: New York.
- De Soyres, F., J. Garcia-Cabo Herrero, N. Goernemann, S. Jeon, G. Lofstrom and D. Moore. (2024). “Why is the U.S. GDP recovering faster than other advanced economies?” The Federal Reserve, FEDS Notes,
- 17 May 2024, https://www.federalreserve.gov/econres/notes/feds-notes/why-is-the-u-s-gdp-recovering-faster-than-other-advanced-economies-20240517.html.
- UN DESA (2021), Advanced economies are facing large-scale labour shortages, United Nations Department of Economic and Social Affairs, Monthly Briefing on the World Economic Situation and Prospects, https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/publication/Monthly_Briefing_155.pdf.
- Tamesberger, D. and R. Moser (2021), Job Retention Schemes in Europe – Austria, ETUI Working Paper, No. 2021.07, https://www.etui.org/sites/default/files/2021-09/Job%20retention%20schemes%20in%20Europe%20-%20Austria_2021.pdf.
- Vincent, C. (2021), Job retention schemes in Europe: France, European Trade Union Institute, Brussels. https://www.etui.org/sites/default/files/2021-09/Job%20retention%20schemes%20in%20Europe%20-%20France_2021.pdf.