THE ECONOMIC EFFECTS OF COVID-19 MITIGATION POLICIES ON UNEMPLOYMENT AND ECONOMIC POLICY UNCERTAINTY

Anasuya Haldar () and Narayan Sethi ()
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Anasuya Haldar: National Institute of Technology Rourkela
Narayan Sethi: National Institute of Technology Rourkela

Bulletin of Monetary Economics and Banking, 2022, vol. 25, issue Special Issue, 61-84

Abstract: This paper examines the effects of COVID-19 mitigation strategies and Economic Policy Uncertainty (EPU) on unemployment-rate over the period November 2019 to April 2021 for the 16 most severely COVID-19 affected countries. Our specific objectives are threefold: first, to examine the dynamic relationship between EPU and unemployment-rate; second, to analyze the extent to which government’s COVID-19 mitigation response affects the unemployment-rate; and third, to examine the effects of governments economic policies on the unemployment-rate through market indicators, such as the business and consumer confidence indices. We find that EPU increases fluctuations in unemployment for the COVID-19 affected countries, while governments’ vaccination drive significantly reduces it. Increases in government stringency aggravate unemployment in the informal sectors and enhances labor inequality.

Keywords: COVID-19; Unemployment rate; Vaccination drive; Policy Uncertainty (search for similar items in EconPapers)
JEL-codes: D84 I12 J21 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:25:y:2022:i:spf:p:61-84

DOI: 10.21098/bemp.v25i0.1833

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