Three lessons from the Danish wage compensation scheme

Economic Memo - August 2021 - No. 5

Authors Bess, Mikkel; Abadi, Saman Jonathan Darougheh Mohammad
Subject Economic activity and employment; Economic policy; Other economic analyses
Type Economic Memo
Year 2021
Published 10 August 2021
Abstract icon This memo aims to take the first steps in analysing the use of the wage compensation scheme in Denmark and its effectiveness to preserve job matches. We find that firms used the furlough programme extensively to save at-risk workers. This focus has been particularly on saving full-time workers and workers with higher tenure.