We use a labor search model with heterogenous households and firms to study the efficacy of a wage subsidy during a pandemic, relative to enhancing unemployment benefits. A large proportion of the economy is forced to shut down, and firms in that sector choose whether to lay off workers or keep...

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...

The Covid-19 pandemic caused major shifts in the operation and fortunes of several industries within New Zealand, including an immediate impact on the workforce. In this setting, the combined epidemiological and economic responses of the government, businesses and the general public played a...