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JobKeeper: An Initial Assessment

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  • Jeff Borland
  • Jennifer Hunt

Abstract

We present details of the design and implementation of the 2020–2021 JobKeeper program and review the literature on its impacts. JobKeeper stimulated the macroeconomy and restrained job loss in the downturn. But because the program was not narrowly targeted, the cost per job saved was high and the impact most likely regressive. However, it would not have been possible to devise and implement a more targeted program in the available time, and as it was, JobKeeper was arguably implemented later than needed for maximum effectiveness. We therefore recommend that Australia consider establishing a short‐time work program for use in future recessions.

Suggested Citation

  • Jeff Borland & Jennifer Hunt, 2023. "JobKeeper: An Initial Assessment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(1), pages 109-123, March.
    • Handle: RePEc:bla:ausecr:v:56:y:2023:i:1:p:109-123
    DOI: 10.1111/1467-8462.12503
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    References listed on IDEAS

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    1. Michael C. Burda & Jennifer Hunt, 2011. "What Explains the German Labor Market Miracle in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 273-335.
    2. Dan Andrews & Jonathan Hambur & Elif Bahar, 2021. "The COVID-19 shock and productivity-enhancing reallocation in Australia: Real-time evidence from Single Touch Payroll," OECD Economics Department Working Papers 1677, OECD Publishing.
    3. Giulia Giupponi & Camille Landais & Alice Lapeyre, 2022. "Should We Insure Workers or Jobs during Recessions?," Journal of Economic Perspectives, American Economic Association, vol. 36(2), pages 29-54, Spring.
    4. James Bishop & Iris Day, 2020. "How Many Jobs Did JobKeeper Keep?," RBA Research Discussion Papers rdp2020-07, Reserve Bank of Australia.
    5. David Autor & David Cho & Leland D. Crane & Mita Goldar & Byron Lutz & Joshua Montes & William B. Peterman & David Ratner & Daniel Villar & Ahu Yildirmaz, 2022. "The $800 Billion Paycheck Protection Program: Where Did the Money Go and Why Did It Go There?," Journal of Economic Perspectives, American Economic Association, vol. 36(2), pages 55-80, Spring.
    6. Rebecca Cassells & Alan Duncan, 2020. "JobKeeper: The efficacy of Australia’s first short-time wage subsidy," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(2), pages 99-128.
    7. Timothy Watson & Juha Tervala & Tristram Sainsbury, 2022. "The JobKeeper payment: How good are wage subsidies?," CAMA Working Papers 2022-36, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
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    Cited by:

    1. Jeff Borland, 2023. "Introduction," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(1), pages 61-69, March.
    2. Chris Murphy, 2023. "Fiscal Policy in the COVID‐19 Era," Economic Papers, The Economic Society of Australia, vol. 42(2), pages 107-152, June.

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