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DeFiPP Research Seminar-Jolan Mohimont (National Bank of Belgium)

Softening the blow: Job retention schemes in the pandemic

Catégorie : conférence/cours/séminaire (spécialisé)
Date : 06/12/2022 16:00 - 06/12/2022 17:15
Lieu : Camille Joset
Orateur(s) : Jolan Mohimont
Organisateur(s) : Romain Houssa


We evaluate the welfare effects of the economic consequence of the COVID shock and job retention schemes (JRS) in a heterogenous agents DSGE model calibrated to the euro area. We find that the welfare cost of the COVID shock is large. Households who hold a limited stock of financial wealth and are unable to perfectly insure against shocks to their labor incomes experience larger welfare losses. JRS implemented in response to the pandemic have large favorable welfare effects and benefit all households. These gains are particularly strong for liquid-asset-poor households, especially for those that are also unemployed or furloughed. JRS bring stronger benefits in economies characterized by labor markets with low exit/entry rates from/to unemployment

Contact : Romain Houssa -
Télecharger : vCal