Productivity and wages of firms using COVID‐19‐related support policies

Masayuki Morikawa

Social Science Quarterly, 2023, vol. 104, issue 3, 202-213

Abstract: Objective This study analyzes the performance over the past several years of firms that have taken advantage of various COVID‐19‐related support policies. Methods This study uses survey data on Japanese firms linked with official firm statistics to analyze the productivity and wages over the past several years of firms. Results The results indicate that the firms that used support policies had lower productivity and wages long before the pandemic. Firms that used multiple policy measures and those that repeatedly used support policies tended to show additionally lower performance. Conclusions Firm support policies may have the side effect of preserving inherently inefficient firms and such a problem may increase in severity as support policies become prolonged.

Date: 2023
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https://doi.org/10.1111/ssqu.13241

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Working Paper: Productivity and Wages of Firms Using COVID-19-related Support Policies (2022)
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