Employment Effects of Financial Constraints during the Great Recession

2019 ◽  
Vol 101 (1) ◽  
pp. 16-29 ◽  
Author(s):  
Michael Siemer
Keyword(s):  
Great Recession ◽  
Financial Constraints ◽  
Employment Effects ◽  
The Great Recession

scholarly journals Preventing NEETs during the Great Recession: the effects of mandatory activation programs for young welfare recipients

2021 ◽  
Author(s):  
Emile Cammeraat ◽  
Egbert Jongen ◽  
Pierre Koning
Keyword(s):  
The Netherlands ◽  
Great Recession ◽  
Economic Recession ◽  
Welfare Recipients ◽  
Employment Effects ◽  
The Great Recession ◽  
Employment Education ◽  
The Impact

AbstractWe study the impact of mandatory activation programs for young welfare recipients in the Netherlands. What makes this reform unique is that it clashed head on with the Great Recession. We use differences-in-differences and data for the period 1999–2012 to estimate the effects of this reform. We find that the reform reduced the number of welfare recipients but had no effect on the number of NEETs (individuals not in employment, education or training). The absence of employment effects contrasts with previous studies on the impact of mandatory activation programs, which we argue is due to the reform taking place during a severe economic recession.

Measuring the Value of Softwood Log Exports: Evidence from Oregon

2021 ◽  
Author(s):  
David Rossi ◽  
Jun Zhai ◽  
Olli-Pekka Kuusela
Keyword(s):  
Great Recession ◽  
Economic Losses ◽  
Export Markets ◽  
Economic Surplus ◽  
Employment Effects ◽  
The Great Recession ◽  
Partial Equilibrium Model ◽  
Net Benefits ◽  
Export Competition ◽  
Additional Losses

Abstract Oregon softwood log exports experienced a resurgence during years after the Great Recession. Using an empirically grounded partial equilibrium model, the purpose of this study is to assess the net effects of log exports on total economic surplus by measuring the effects of a hypothetical absence of export markets from 2010:Q1 to 2015:Q4. Based on our modeling results, the net economic losses would have amounted to $248 million during the study period in total. Oregon mills would have gained $1.66 billion in total, whereas landowners would have lost $1.91 billion in total had there not been export markets. Furthermore, additional losses would have occurred from the forgone export premium. Our modeling results suggest that harvests would have been 1.97 billion board feet lower in the absence of export markets. However, Oregon mills would have used an additional 3.0 billion board feet. We also provide estimates for potential employment effects. Study Implications The purpose of our study is to compute how much Oregon mills would have gained from the absence of export competition during the six years after the Great Recession and how much landowners would have lost if they did not have the opportunity to export softwood logs. We also assess how many additional jobs domestic mills would have sustained and how many jobs would have disappeared from logging and transportation activities if exports were absent. Our results inform policymakers and stakeholders about the net benefits of softwood log exports in Oregon, as well as about the distributional consequences of exports.

scholarly journals Erratum to: Shocks, financial constraints and households’ consumption amid the great recession

2021 ◽  
Vol 68 (2) ◽  
pp. 253-253
Author(s):  
E Editorial
Keyword(s):  
Great Recession ◽  
Financial Constraints ◽  
The Great Recession ◽  
Editing Process ◽  
Font Color

After publication of the original article, it came to the authors? attention that during the editing process a mathematical operator is missing in the text on pages 5 and 12. <br><br><font color="red"><b> Link to the corrected article <u><a href="http://dx.doi.org/10.2298/PAN2101001A">10.2298/PAN2101001A</a></b></u>

Long-Term Employment Effects from Job Losses during the COVID-19 Crisis? A Comparison to the Great Recession and Its Slow Recovery

2021 ◽  
Vol 111 ◽  
pp. 481-485
Author(s):  
Till von Wachter
Keyword(s):  
Great Recession ◽  
Job Loss ◽  
Loss Rate ◽  
Long Term Effects ◽  
Slow Recovery ◽  
Employment Effects ◽  
The Great Recession

This paper compares predictions for the long-term reductions in the employment-to-population (EPOP) ratio based on estimates of the overall job-loss rate and the long-term effects of job loss with the actual evolution of the EPOP ratio. It took about ten years after the end of the Great Recession for the EPOP ratio to recover from substantial reductions partly implied by job-loss effects. Based on job loss during the COVID-19 crisis through July, the prediction is that 15-37 percent of the reduction of the EPOP ratio in December 2020 is permanent.

scholarly journals Shocks, financial constraints and households’ consumption amid the great recession

2021 ◽  
Vol 68 (1) ◽  
pp. 1-33
Author(s):  
Philip Arestis ◽  
Germana Corrado ◽  
Luisa Corrado
Keyword(s):  
Great Recession ◽  
Financial Constraints ◽  
Local Level ◽  
Sample Selection ◽  
Careful Analysis ◽  
The Great Recession ◽  
Credit Lines ◽  
Outstanding Debt ◽  
Main Determinants ◽  
The Impact

Overall, there is now considerable evidence that financial constraints are at the root of the lack of consumption smoothing during the Great Recession. We push this evidence forward and show that in the presence of credit constraints, a job loss leads to larger drops in households? consumption. We build a set of testable hypotheses from our theoretical model and employ microdata taken from the second round of the Life in Transition Survey (LiTS II) (European Bank for Reconstruction and Development 2010). We specifically assess the role of financial constraints in explaining households? consumption coping strategies after the crisis shocks. Economic hardship is more likely to be observed if households experience difficulties in meeting outstanding debt obligations or in obtaining new credit lines because of financial constraints. The impact of job and wage shocks on households? consumption is much attenuated, by around a half, when we control for sample selection bias in accessing the formal credit markets. In the context of increasing impoverishment across Europe, the paper shows that a careful analysis of the main determinants of households? economic and financial hardship is crucial to formulate targeted measures at the regional and local level.

scholarly journals Endogenous Liquidity and the Business Cycle

2015 ◽  
Vol 105 (6) ◽  
pp. 1883-1927 ◽  
Author(s):  
Saki Bigio
Keyword(s):  
Asymmetric Information ◽  
Business Cycle ◽  
Great Recession ◽  
Financial Constraints ◽  
Aggregate Fluctuations ◽  
The Great Recession ◽  
The Business Cycle ◽  
The Cost

I study an economy where asymmetric information about the quality of capital endogenously determines liquidity. Liquid funds are key to relaxing financial constraints on investment and employment. These funds are obtained by selling capital or using it as collateral. Liquidity is determined by balancing the costs of obtaining liquidity under asymmetric information against the benefits of relaxing financial constraints. Aggregate fluctuations follow increases in the dispersion of capital quality, which raise the cost of obtaining liquidity. An estimated version of the model can generate patterns for quantities and credit conditions similar to the Great Recession. (JEL D82, E22, E24, E32, E44, G01)

scholarly journals The Employment Effects of State Hiring Credits

ILR Review ◽  
2016 ◽  
Vol 70 (5) ◽  
pp. 1111-1145 ◽  
Author(s):  
David Neumark ◽  
Diego Grijalva
Keyword(s):  
Great Recession ◽  
Employment Growth ◽  
Job Creation ◽  
Employment Effects ◽  
The Great Recession ◽  
Job Growth ◽  
The Cost ◽  
The Unemployed ◽  
New Jobs ◽  
Recession Period

State and federal policymakers grappling with the aftermath of the Great Recession sought ways to spur job creation, in many cases adopting hiring credits to encourage employers to create new jobs. Virtually no evidence is available, however, on the effects of these kinds of counter-recessionary hiring credits, with the only evidence coming from much earlier studies of the federal New Jobs Tax Credit in the 1970s. This article provides evidence on the effects of state hiring credits on job growth. Some specific types of hiring credits—including those targeting the unemployed, those that allow states to recapture credits when job creation goals are not met, and refundable hiring credits—appear to have succeeded in boosting job growth, particularly during the Great Recession period and perhaps also during recessions in general. At the same time, some evidence suggests that these credits can generate much more hiring than net employment growth, consistent with the credits encouraging churning of employees that raises the cost of producing jobs through hiring credits.

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