00000nam 2200000zi 4500 9.894790 CaOODSP 20230928110412 m o d f cr |n||||||||| 201217t20202020oncd ob f|0| 0 eng d CaOODSP eng rda CaOODSP n-cn--- FB3-5/2020-54E-PDF Birinci, Serdar, author. Labour market policies during an epidemic / by Serdar Birinci, Fatih Karahan, Yusuf Mercan and Kurt See. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (ii, 28 pages) : charts. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-54 "Last updated: December 15, 2020." Includes bibliographical references (pages 19-21). "We study the positive and normative implications of labor market policies that counteract the economic fallout from containment measures during an epidemic. We incorporate a standard epidemiological model into an equilibrium search model of the labor market to compare unemployment insurance (UI) expansions and payroll subsidies. In isolation, payroll subsidies that preserve match capital and enable a swift economic recovery are preferred over a cost-equivalent UI expansion. When considered jointly, however, a cost-equivalent optimal mix allocates 20 percent of the budget to payroll subsidies and 80 percent to UI. The two policies are complementary, catering to different rungs of the productivity ladder. The relatively small proportion allocated to payroll subsidies is sufficient to preserve high-productivity jobs but this also leaves room for social assistance to workers who face inevitable job losses"--Abstract. COVID-19 (Disease) Economic aspects Canada. Business cycles Mathematical models. COVID-19 Aspect économique Canada. Cycles économiques Modèles mathématiques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2020-54. (CaOODSP)9.806221 PDF 689 KB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-54-eng.pdf