The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany

In this paper, we investigate the impact of the COVID-19 pandemic on German household income in 2020 using a micro-level approach. We combine a microsimulation model with novel labour market transition techniques to simulate the COVID-19 shock on the German labour market. We find the consequences of...

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Autores principales: Christl, Michael, De Poli, Silvia, Hufkens, Tine, Peichl, Andreas, Ricci, Mattia
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9125969/
https://www.ncbi.nlm.nih.gov/pubmed/35645463
http://dx.doi.org/10.1007/s10797-022-09738-w
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author Christl, Michael
De Poli, Silvia
Hufkens, Tine
Peichl, Andreas
Ricci, Mattia
author_facet Christl, Michael
De Poli, Silvia
Hufkens, Tine
Peichl, Andreas
Ricci, Mattia
author_sort Christl, Michael
collection PubMed
description In this paper, we investigate the impact of the COVID-19 pandemic on German household income in 2020 using a micro-level approach. We combine a microsimulation model with novel labour market transition techniques to simulate the COVID-19 shock on the German labour market. We find the consequences of the labour market shock to be highly regressive with a strong impact on the poorest households. However, this effect is nearly entirely offset by automatic stabilisers and discretionary policy measures. We explore the cushioning effect of these policies in detail, showing that short-time working schemes and especially the one-off payments for children are effective in cushioning the income loss of the poor.
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spelling pubmed-91259692022-05-23 The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany Christl, Michael De Poli, Silvia Hufkens, Tine Peichl, Andreas Ricci, Mattia Int Tax Public Financ Article In this paper, we investigate the impact of the COVID-19 pandemic on German household income in 2020 using a micro-level approach. We combine a microsimulation model with novel labour market transition techniques to simulate the COVID-19 shock on the German labour market. We find the consequences of the labour market shock to be highly regressive with a strong impact on the poorest households. However, this effect is nearly entirely offset by automatic stabilisers and discretionary policy measures. We explore the cushioning effect of these policies in detail, showing that short-time working schemes and especially the one-off payments for children are effective in cushioning the income loss of the poor. Springer US 2022-05-23 /pmc/articles/PMC9125969/ /pubmed/35645463 http://dx.doi.org/10.1007/s10797-022-09738-w Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) .
spellingShingle Article
Christl, Michael
De Poli, Silvia
Hufkens, Tine
Peichl, Andreas
Ricci, Mattia
The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany
title The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany
title_full The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany
title_fullStr The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany
title_full_unstemmed The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany
title_short The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany
title_sort role of short-time work and discretionary policy measures in mitigating the effects of the covid-19 crisis in germany
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9125969/
https://www.ncbi.nlm.nih.gov/pubmed/35645463
http://dx.doi.org/10.1007/s10797-022-09738-w
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