Labour market policies during an epidemic / by Serdar Birinci, Fatih Karahan, Yusuf Mercan and Kurt See.: FB3-5/2020-54E-PDF
"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.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.894790&sl=0
| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | Labour market policies during an epidemic / by Serdar Birinci, Fatih Karahan, Yusuf Mercan and Kurt See. |
| Series title | Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-54 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "Last updated: December 15, 2020." Includes bibliographical references (pages 19-21). |
| Publishing information | Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 |
| Author / Contributor | Birinci, Serdar, author. |
| Description | 1 online resource (ii, 28 pages) : charts. |
| Catalogue number |
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| Subject terms | COVID-19 (Disease) -- Economic aspects -- Canada. Business cycles -- Mathematical models. COVID-19 -- Aspect économique -- Canada. Cycles économiques -- Modèles mathématiques. |
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