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The Economic Effects Of Covid-19 Mitigation Policies On Unemployment And Economic Policy Uncertainty

Author

Listed:
  • Anasuya Haldar

    (National Institute of Technology Rourkela)

  • Narayan Sethi

    (National Institute of Technology Rourkela)

Abstract

This paper examines the effects of COVID-19 mitigation strategies and Economic Policy Uncertainty (EPU) on unemployment-rate over the period November 2019 to April 2021 for the 16 most severely COVID-19 affected countries. Our specific objectives are threefold: first, to examine the dynamic relationship between EPU and unemployment-rate; second, to analyze the extent to which government’s COVID-19 mitigation response affects the unemployment-rate; and third, to examine the effects of governments economic policies on the unemployment-rate through market indicators, such as the business and consumer confidence indices. We find that EPU increases fluctuations in unemployment for the COVID-19 affected countries, while governments’ vaccination drive significantly reduces it. Increases in government stringency aggravate unemployment in the informal sectors and enhances labor inequality.

Suggested Citation

  • Anasuya Haldar & Narayan Sethi, 2022. "The Economic Effects Of Covid-19 Mitigation Policies On Unemployment And Economic Policy Uncertainty," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 25(Special I), pages 61-84, March.
    • Handle: RePEc:idn:journl:v:25:y:2022:i:spf:p:61-84
    DOI: https://doi.org/10.21098/bemp.v25i0.1833
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    More about this item

    Keywords

    COVID-19; Unemployment rate; Vaccination drive; Policy Uncertainty;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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