The impact of the COVID-19 crisis across different socio-economic groups and the role of job retention schemes - The case of Switzerland

This paper analyses the impact of the COVID-19 crisis across socio-economic groups in Switzerland and the role played by its short-time work scheme during the first year of the crisis until the end of 2020. To this end, it compares changes in hours worked for different socio-groups in Switzerland and other OECD countries, and then documents differences across groups in the use of short time work and in the risk of job loss. Finally, the paper investigates differences between groups of short-time work participants in terms of the reduction in working time, job search behavior and the risk of subsequent job loss. The evidence so far suggests that the Swiss short time work scheme as it operated during the first year of the COVID-19 crisis was fit for purpose.