We analyze the characteristics of firms using relief policies during the pandemic.
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Data from a firms survey during the COVID-19 pandemic are used.
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Many firms used financial support programs and employment subsidies.
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Productivity of firms using relief measures was lower prior to the pandemic.
Abstract
This study, based on an original survey of Japanese firms, analyzes the productivity of firms that used relief policy measures during the COVID-19 pandemic. The productivity of firms using these relief measures was lower than that of non-user firms prior to the pandemic, suggesting that inefficient firms have been affected seriously. The result cautions against the excessive and prolonged relief policies.
