ADDRESSING THE EMPLOYMENT EFFECTS OF THE FINANCIAL CRISIS The Role of Wage Subsidies and Reduced Work Schedules

As countries look forward to the resumption of growth following the economic crisis there are concerns about the response of labor markets. Indeed, the human impact of the recovery in terms of resumed poverty reduction and increased well-being will be determined by the respon-siveness of jobs—both their quantity and quality—to increased economic activity. The response of employment to growth will depend, in part, on the efficacy of labor market policies, including those adopted in industrialized countries, to stabilize/ promote employment and provide assistance to those who lose their jobs. In the first category the most com-mon interventions include: (i) various forms of wage subsidies; (ii) reduced work schedules; and (iii) access to credit. The second category involves mainly: (i) th