Understanding How Job Retention Schemes Reshape the Within-Occupation Skill Profile of Employees within Firms

Konstantins Benkovskis, Olegs Tkacevs and Karlis Vilerts

No 2024/02, Working Papers from Latvijas Banka

Abstract: This study draws on employer-employee data for Latvia to investigate how participating in a job retention scheme (JRS) impacts the within-occupation composition of skills in participating firms. The findings of this research reveal that involvement in JRS positively affects the likelihood of employees retaining their employment with the same firm after the end of the programme. This positive effect is independent of the employee's skill level. However, individuals that perform higher-skilled tasks in the same occupation are less likely to participate in the JRS because of legal restrictions on the maximum amount of the benefit and the income replacement rate. Taken together, these findings suggest that JRSs may have a detrimental impact on the within-occupation composition of the skills of the workforce at the firms that participate in such schemes.

Keywords: job retention scheme; short-term work scheme; Covid-19; employment; skills (search for similar items in EconPapers)
JEL-codes: E24 H12 J62 J68 (search for similar items in EconPapers)
Date: 2024-04-16
New Economics Papers: this item is included in nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://datnes.latvijasbanka.lv/papers/WP_2-2024.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ltv:wpaper:202402

Access Statistics for this paper

More papers in Working Papers from Latvijas Banka Contact information at EDIRC.
Bibliographic data for series maintained by Konstantins Benkovskis ().