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Protect Young People during Severe Economic Downturns with Income Maintenance Programs

Оглавление

Policies designed to diminish the recessionary effects of the pandemic on individual purchasing power vary considerably across countries. During the COVID-​19 pandemic, some European countries nationalized payrolls, which helped to provide many workers with quick access to subsidized wages and protect them against unemployment. While this policy offers limited help for workers under temporary contracts, it is advantageous for many young people, who are often the first laid off (as they were the most recently hired) during an economic downturn. Another approach is to subsidize youth employment. In the UK, the government has proposed the creation of a fund to support six-​month job placements for unemployed young people, and youth in other countries would benefit from similar programs.

The US, however, has relied more heavily on the expansion and supplementation of unemployment benefits. Youth unemployment there increased sharply and many young people faced considerable delays in access to these benefits. In Brazil, a program to support self-​employed workerswas also marked by delays and disruptions, leaving many young workers unsupported for many months. While some unemployed youth can rely on their families to help them, when economic downturn is widespread parents may also have become unemployed or experienced wage reductions. Expansion of policies to replenish lost wages at times of severe economic downturn, for youth as well as older workers, can help prevent poverty, homelessness, and food insecurity, as well as the macroeconomic “ripple effects” of lost purchasing power in exacerbating economic crisis. These policies could take the form of subsidized organizational payrolls, but should be expanded to include independent contractors, consultants, care workers, and other precarious workers, many of whom are youth. Income maintenance can also be provided by government-​sponsored employment programs (hiring youth to work in parks, schools, playgrounds, etc.).

Social Problems in the Age of COVID-19  Vol 2

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