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COVID-19 Government Responses to Labour Market Disruptions and Economic Impacts: The New Zealand Model

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  • Maani, Sholeh A.

    (University of Auckland)

Abstract

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 significant role in the health of, and the provision of basic necessities to, the population, maintaining the viability of the economy despite lockdowns. Indeed, New Zealand's combination of policy responses resulted in one of the world's lowest death rates, while the economy's economic loss was on a par with the European countries. Policy responses to workforce disruptions included the swift designation of essential service workers, a government-sponsored wage subsidy scheme and the facilitation of remote work and digital commerce, which allowed uninterrupted operations for many businesses and public sector agencies. This paper discusses the changes in the business environment in New Zealand from an economics perspective, and the special elements of the government's policy response to the Covid-19 pandemic.

Suggested Citation

  • Maani, Sholeh A., 2021. "COVID-19 Government Responses to Labour Market Disruptions and Economic Impacts: The New Zealand Model," IZA Discussion Papers 14929, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14929
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    References listed on IDEAS

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    1. Martin S Eichenbaum & Sergio Rebelo & Mathias Trabandt, 2021. "The Macroeconomics of Epidemics [Economic activity and the spread of viral diseases: Evidence from high frequency data]," The Review of Financial Studies, Society for Financial Studies, vol. 34(11), pages 5149-5187.
    2. Alexander Bick & Adam Blandin & Karel Mertens, 2023. "Work from Home before and after the COVID-19 Outbreak," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(4), pages 1-39, October.
    3. Mendolia, Silvia & Stavrunova, Olena & Yerokhin, Oleg, 2021. "Determinants of the community mobility during the COVID-19 epidemic: The role of government regulations and information," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 199-231.
    4. Veronica Guerrieri & Guido Lorenzoni & Ludwig Straub & Iván Werning, 2022. "Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages?," American Economic Review, American Economic Association, vol. 112(5), pages 1437-1474, May.
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    Cited by:

    1. Eichhorst, Werner & Marx, Paul & Rinne, Ulf & Brunner, Johannes, 2022. "Job Retention Schemes during COVID-19: A Review of Policy Responses," IZA Policy Papers 187, Institute of Labor Economics (IZA).
    2. Lydia Cheung & Philip Gunby, 2023. "The Initial and Dynamic Effects of the COVID-19 Pandemic on Crime in New Zealand," Working Papers 2023-03, Auckland University of Technology, Department of Economics.
    3. Dean Hyslop & Dave Maré & Shannon Minehan, 2023. "COVID-19 Wage Subsidy: Outcome evaluation," Working Papers 23_03, Motu Economic and Public Policy Research.

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    More about this item

    Keywords

    COVID-19; economic impact; labour market; remote work; essential workers; wage subsidy;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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