Smart, Michael; Kronberg, Matthew; Lesica, Josip; … - 2023
We estimate the causal effects of a pandemic-era wage subsidy program in Canada on job losses and business closures … changes in the wage subsidy rate. The estimated net wage elasticity of employment was 0.11, implying a small aggregate … employment effect of the program and an estimated fiscal cost per job saved of nearly $200,000 per year. Subsidy payments caused …