The paper studies the employment effects of the widespread job retention support that was provided during the Covid-19 pandemic, using firm-level administrative data for Estonia that cover the whole population of firms in 2019-2020. The endogeneity of the support is addressed by creating a...

Economic recessions can boost the productivity-enhancing reallocation of jobs, yet the Covid-19 crisis has provided limited and mixed evidence of that. The paper studies the link between productivity and reallocation and investigates the role of job retention schemes in it, using a rich...