Furlough Schemes in the COVID-19 Crisis: An Initial Analysis of Furloughed Employees Resuming Work

12 Pages Posted: 9 Apr 2021 Last revised: 29 Apr 2021

See all articles by Mario Izquierdo

Mario Izquierdo

Banco de España

Sergio Puente

Banco de España

Ana Regil

Banco de España

Date Written: March 30, 2021

Abstract

This article uses microdata from the Spanish Labour Force Survey (EPA) to conduct an initial analysis of the use of furlough schemes as a temporary employment adjustment mechanism in this crisis. The information drawn from the survey shows there has been an intensive use of furlough schemes since the COVID-19 crisis broke, with more than 20% of dependent employees furloughed in 2020 Q2. This is far higher than the incidence observed in previous recessions. Analysis of the employment transitions of furloughed workers shows that they were much more likely to resume employment in Q3 than workers who lost their jobs but were not furloughed. These schemes have, therefore, been highly effective in allowing workers to resume work once the lockdown measures adopted in spring 2020 were lifted. However, considering the furlough schemes that began in Q3 and those that were longer-lasting, there is less difference between furloughed and non-furloughed workers in terms of the probability of their resuming work. This essentially reflects the ongoing low level of activity associated with the continuation of the pandemic-related restrictions.

Keywords: furlough schemes, employment, COVID-19

JEL Classification: J23, J63, J08

Suggested Citation

Izquierdo, Mario and Puente, Sergio and Regil, Ana, Furlough Schemes in the COVID-19 Crisis: An Initial Analysis of Furloughed Employees Resuming Work (March 30, 2021). Banco de Espana Article 11/21, Available at SSRN: https://ssrn.com/abstract=3821593

Mario Izquierdo (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Sergio Puente

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Ana Regil

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
70
Abstract Views
270
rank
413,450
PlumX Metrics