The job retention scheme in Slovakia: impact on dismissals and firm survival in the COVID-19 pandemic

0585185 - NHU-C 2025 RIV GB eng J - Článek v odborném periodiku
Bělín, Matěj - Veselková, M.
The job retention scheme in Slovakia: impact on dismissals and firm survival in the COVID-19 pandemic.
Eastern European Economics. Roč. 62, č. 3 (2024), s. 361-383. ISSN 0012-8775. E-ISSN 1557-9298
Institucionální podpora: Cooperatio-COOP
Klíčová slova: employment * firm failure * job retention scheme
Obor OECD: Applied Economics, Econometrics
Impakt faktor: 1.1, rok: 2022
Způsob publikování: Omezený přístup
https://doi.org/10.1080/00128775.2023.2254744

This paper evaluates the impact of the Slovak job retention scheme introduced in 2020 on dismissals and survival of small firms during the COVID-19 pandemic. We exploit exogenous variation in epidemic intensity, measured as new COVID-19 cases within a district per month. We show that the sensitivity of dismissals to the intensifying epidemic among unsupported firms was low, i.e. these firms were relatively unaffected by the shock. In contrast, participation in the job retention scheme reduced the sensitivity of firm dismissals to the intensification of the epidemic, preserving endangered jobs. Supported firms benefited by roughly the same amount, regardless of their management quality.
Trvalý link: https://hdl.handle.net/11104/0352930