Posted 12/4/2023, 4:37:00 PM
Generous Covid Aid Linked to Reduced Workforce Participation, Warn Central Banks
- Covid handouts made people less willing to work, warn central bankers
- Countries with biggest handouts saw largest drop in willingness to work longer hours
- UK, US, and Canada highlighted as countries with generous aid and workforce declines
- Hypothesis that handouts broke link between working hard and earning more
- Could fuel inflation as companies pay more to attract staff amid labor shortages