Rescuing the labour market in times of COVID-19: Don't forget new hires

Abstract

"The spread of COVID-19 and the ensuing drastic lockdowns are placing economies and labour markets worldwide in a state of emergency. Governments are struggling to safeguard jobs and firms. Short-time work and comprehensive liquidity support for businesses and the self-employed are some measures being used. This column illustrates the consequences of a substantial hiring stall on unemployment and proposes hiring subsidies - directly reduce firms' costs and thereby stimulate hiring - as a cost-effective stimulus measure for European countries to reduce the risk of unemployment hysteresis effects." (Author's abstract, IAB-Doku) ((en))

Cite article

Merkl, C. & Weber, E. (2020): Rescuing the labour market in times of COVID-19: Don't forget new hires. In: VOX No. 07.04.2020, o. Sz.