Why don’t employers hire long-term unemployed entitled to a wage subsidy? The employer’s perspective on subsidised employment

Despite a generous system with high wage subsidies for the long-term unemployed and newly arrived immigrants, many Swedish employers do not make use of this opportunity. This study seeks to increase knowledge of why some employers use the opportunity and others do not. Both register and survey data and combined register and survey data are used. One finding is that employers lack information about the subsidy programmes, although employers that had previously employed subsidised workers were much more likely to employ them in the future. Thus, a key policy question is how to present these subsidies to employers to reduce this barrier. The study also found that some employers hired people from these groups from altruistic motives. However, some employers responded that they would not employ a person entitled to a subsidy, regardless of the content of the subsidy scheme.

Open access renewable resources, urban unemployment, and the resolution of dual institutional failures

This paper investigates how poverty reduction and natural resource preservation can be simultaneously achieved in a small open dual economy with urban wage rigidity, open access rural resources, and rural-urban migration. An increase in the export tax rate on the rural resource good increases urban unemployment in both the short run and the long run with resource dynamics. Given the institutional failures, the first-best policy is an urban wage subsidy combined with either a rural wage subsidy at a lower rate or, if the urban output price is sufficiently high, a rural tax. When the institutional failures can be resolved endogenously, an increase in the export tax on the resource good can induce rural institutional change away from open access. However, tariff protection of urban manufacturing hinders such a rural institutional change.

Ekplorasi Penyaluran Bantuan Subsidi Upah (BSU) Tenaga Kependidikan Non PNS Selama Pandemi COVID-19

This study aims to explore the distribution of wage subsidy assistance in accordance with the government's objectives, this study will answer whether BSU is right on target and minimizes the spread of the corona virus in the Ministry of Education and Culture. The research method used is exploratory and descriptive. Exploratory is used to provide in-depth explanations, while descriptive is used to analyze the study qualitatively in order to obtain findings and descriptions of a phenomenon that occurs. The results of this study found that; BSU distribution is right on target without any significant obstacles, the distribution mechanism is ineffective in suppressing the spread of the corona virus. Distribution through government banks found technical obstacles in the form of recipient validation which required visiting the channeling bank with a relatively long service time so that it created a potential crowd, even though there had been prevention in the form of strict implementation of protocols but conditions became more complicated where the assistance of teachers and lecturers coincided with government stimulus assistance. other, so the goal of suppressing the spread of the corona virus is contrary to the results of this study. Further research recommends researching appropriate dispensing methods..

The economics and accounting for COVID-19 wage subsidy and other government grants

Purpose This paper aims to examine the economic rationale for the COVID-19 wage subsidy and grants related to assets and the accounting for these wealth transfers under NZ IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The principal contribution is presenting an economics–accounting nexus for government assistance to firms during a pandemic and for the nation’s economic development. Design/methodology/approach This is a descriptive study that draws on the economic theory of regulation to understand the rationale for wealth transfers, then examining the accounting for the wealth transfers by analyzing the financial statements of NZX 50 companies that received the wage subsidy and SkyCity and Chorus that received substantial grants to develop and operate the New Zealand International Convention Centre and building a large part of New Zealand’s Ultra-Fast Broadband fiber optic network, respectively. Findings First, the 10 NZX 50 companies that received the government’s wage subsidy were justified to receive it from the legal, ethical and moral perspectives. However, some non-NZX 50 companies, while legally entitled to the wage subsidy, took advantage of the wealth transfer when they were profitable and paid dividends. This latter group of companies was not seen as behaving ethically and morally. Second, the government granted millions of dollars to SkyCity and Chorus for building critical infrastructures that are economically beneficial for the nation and that are unlikely to attract private investment, and these companies accounted for the grants related to assets in accordance with NZ IAS 20. Research limitations/implications The financial statement impacts of the wage subsidy are based on a subset of NZX 50 companies with available information at the time of writing. However, they do not compromise the external validity of the findings because the wage subsidy applies to all businesses. Similarly, the manner in which SkyCity and Chorus accounted for the grants related to assets would apply equally to any entity that is a recipient of such a grant. Originality/value This paper presents an economic understanding for the existence of government grants and how the accounting mirrors the economic rationale for the “grants related to income” and “grants related to assets.” This paper demonstrates the importance of the economics–accounting nexus.

Sustainability of MSMEs in Indonesia

This chapter is aimed to discuss the condition of the MSMEs in Indonesia at the beginning of COVID-19 as well as the strategies that the government has undertaken to minimize the impact of COVID-19. The data for analysis is data from online survey results that carried out between 24 April-2 May 2020 with a total of 204 MSMEs participating. The results of the survey show that more than half (53%) of the MSMEs suffered from a decrease in income/production; even 43% stopped production at the beginning of the pandemic. Most of the MSMEs in various sectors admitted that they were only able to survive for less than three months, with the worst sectors being trade, corporate services, and construction. The government has implemented wage subsidy policies, loan interest subsidies, and tax abolition to save the MSMEs from the impact of COVID-19. For this matter, efforts to save MSMEs must continue, especially through expanding wage subsidies, increasing the realization of the low subsidy budget, and transforming to digital-based businesses.

Support for Workers in the Covid-19 Emergency

This article first briefly describes pre-Covid-19 support for workers who lose their jobs in New Zealand, then outlines and evaluates the government response to potential and actual job loss in the Covid-19 emergency. The main response was a wage subsidy. Some aspects of it were highly effective; others were problematic and tolerable only because it was a crisis and temporary. It demonstrated the systemic weaknesses in New Zealand’s support for displaced workers. The article finally considers what is needed to prepare New Zealand better for times of job loss.