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Did the Australian Jobkeeper Program Save Jobs by Subsidizing Temporary Layoffs?

Author

Listed:
  • Borland, Jeff

    (University of Melbourne)

  • Hunt, Jennifer

    (Rutgers University)

Abstract
We analyze the JobKeeper lump-sum wage subsidy introduced by the Australian government in response to the COVID-19 pandemic, paying particular attention to the role of temporary layoffs in saving jobs. Although temporary layoffs were widely used, we find that recalls of workers on temporary layoff played only a small role in the early recovery. This suggests either that temporary layoffs were very long, or that many workers on temporary layoffs were never recalled.

Suggested Citation

  • Borland, Jeff & Hunt, Jennifer, 2021. "Did the Australian Jobkeeper Program Save Jobs by Subsidizing Temporary Layoffs?," IZA Discussion Papers 14859, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14859
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    References listed on IDEAS

    as
    1. James Bishop & Iris Day, 2020. "How Many Jobs Did JobKeeper Keep?," RBA Research Discussion Papers rdp2020-07, Reserve Bank of Australia.
    2. Giulia Giupponi & Camille Landais, 2023. "Subsidizing Labour Hoarding in Recessions: The Employment and Welfare Effects of Short-time Work," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(4), pages 1963-2005.
    3. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372, National Bureau of Economic Research, Inc.
    4. Michael C. Burda & Jennifer Hunt, 2011. "What Explains the German Labor Market Miracle in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 273-335.
    5. Rebecca Cassells & Alan Duncan, 2020. "JobKeeper: The efficacy of Australia’s first short-time wage subsidy," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(2), pages 99-128.
    6. Landais, Camille & Giupponi, Giulia, 2018. "Subsidizing Labor Hoarding in Recessions: The Employment & Welfare Effects of Short Time Work," CEPR Discussion Papers 13310, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Caroline Fyfe & Dave Maré & Phoebe Taptiklis, 2023. "COVID-19 Wage Subsidy: Outcome evaluation - Value for Money," Working Papers 23_04, Motu Economic and Public Policy Research.
    2. Lazzari, Ester & Reimondos, Anna & Gray, Edith, 2022. "Childbearing desires before and after the Covid-19 outbreak in Australia: Who changed their attitudes toward having a first or additional child?," SocArXiv qbgmp, Center for Open Science.
    3. Viet H. Nguyen & Tim Robinson & Sarantis Tsiaplias, 2022. "The Australian Economy in 2021–2022: The Virus Strikes Back," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(1), pages 5-24, March.
    4. Dean Hyslop & Dave Maré & Shannon Minehan, 2023. "COVID-19 Wage Subsidy: Outcome evaluation," Working Papers 23_03, Motu Economic and Public Policy Research.
    5. Timothy Watson & Paul Buckingham, 2023. "Australian Government COVID‐19 Business Supports," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(1), pages 124-140, March.

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    More about this item

    Keywords

    COVID-19; JobKeeper; wage subsidy; temporary layoffs;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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