Factors behind the employment loss in Galicia: Great Recession of 2008 vs. the first wave of the COVID-19 pandemic
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In a recession such as COVID-19 pandemic with important consequences in the labour market, it is important to design policies that really address factors behind the employment loss for each demographic subgroup. The aim of this paper is to decompose and identify these factors for each demographic group, comparing the effects of the Great Recession with the COVID-19 pandemic. Although segregation was saving job loss for young and female workers in the Great Recession, these groups were concentrated in the most affected sectors during the COVID-19, increasing their job loss. However, a policy which just focuses on recovering employment from these sectors will not solve the employment problems behind young workers since they are being used as reserved workers fired in the downturn and hired in the upturns. We attempt to measure also the effect of Expediente de Regularización de Empleo Temporal (ERTE) subsidies on employment.
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