The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)
Table 1 Literature review
Authors | Country | Program | Methods | Key finding |
|---|---|---|---|---|
Galasso et al. 2001 | Argentina | Proempleo: wage subsidy and specialized training program provided to a random sample of workfare participants | Difference in Differences and instrumental variables | Employment has improved amongst voucher recipients. However, there are no signs of an impact on their incomes |
Groh et al. 2016 | Jordan | New opportunities for women: soft skills training and wage subsidy vouchers for young female graduates | Randomization | The wage voucher has led to an increase in employment in the short run, but the average effect is much smaller and no longer statistically significant after the voucher period has expired |
Chatri et al. 2021 | Morocco | Idmaj: employment subsidy targeting higher education graduates | Propensity score matching | The program has a positive but marginally significant effect on reducing unemployment and improving employment |
Galasso & Ravallion 2004 | Argentina | Jefes: direct income support for families whose head has become unemployed because of the crisis | Propensity score matching | The program has reduced the unemployment rate and has contributed to social protection during crisis |
Bruhn 2020 | Mexico | Wage subsidy program: implemented in response to the economic crisis to firms to keep their workers | Difference in Differences | The use of wage subsidies may be particularly effective during an economic crisis, the program had a positive, but not statistically significant effect on employment during the program’s duration |
Bishop & Day 2020 | Australia | Jobkeeper: a wage subsidy to help firms affected by COVID-19 retain their staff | Difference in Differences | JobKeeper played an important role in cushioning the decline in employment over the first half of 2020, it had reduced total job losses by at least 700,000 during the crisis |
Maré & Hyslop 2021 | New Zealand | COVID wage subsidy (CWS): a 12-week lump sum subsidy payment to employers | Descriptive analysis | New Zealand’s COVID wage subsidy (CWS) program had a positive impact on labor market flows. In addition, the drop in job turnover was higher in subsidized firms than in unsubsidized ones |
Graham & Ozbilgin 2021 | New Zealand | COVID wage subsidy (CWS): a 12-week lump sum subsidy payment to employers | Structural macroeconomic model | The wage subsidy has prevented a large number of job losses. It has benefited the most to those who were most affected by lockdowns (Service sector and young workers) |
Linden et al. 2021 | Ireland | Irish COVID-19 wage subsidy scheme | Microsimulation modelling | Thescheme (CWS) lead to a strong disincentive to work. mainly because of the generosity of unemployment benefits and the evolution of labor costs |