International comparison of wage subsidies

by Steve Hamilton, Andrew Charlton, Angus Moore

Steve Hamilton, Andrew Charlton, Angus Moore

JobKeeper was the largest government support package introduced by the Australian government in response to the COVID crisis. It was a wage subsidy, designed to help firms forced to close by COVID-19 retain their staff, and prevent the severing of these job matches for businesses. This project uses data on hundreds of thousands of Australian small businesses and their employees to examine what impact the policy had. We look at the types of firms that applied for it and their behaviour; the impact it had on employee retention and wages; and what other impacts it had on firm performance – such as retention of other non-eligible employees, sales growth, cashflow, etc.

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