Families' Financial Stress & Well-Being: The Importance of the Economy and Economic Environments.

The Great Recession and the unfolding COVID-19 Pandemic Recession-two major disruptions to the economy that occurred just one decade apart-unequivocally confirm the importance of the economy and economic environments for understanding families' financial stress and well-being. However, recent published literature places too little emphasis on the economy and economic environments and instead focuses on explanations rooted within individuals and families. In this article, we review research on families' financial stress and well-being published in JFEI between 2010 and 2019, which analyzed data collected during the Great Recession and were subsequently published in the shadow of the economic downturn. We discuss the economy and economic environments as gaps in the literature and encourage future research to focus on these explanations of stress and well-being, especially in response to the pandemic recession.

Wall Street QE vs. Main Street Lending.

Monetary and fiscal authorities reacted swiftly to the COVID-19 pandemic by purchasing assets (or "Wall Street QE") and lending directly to non-financial firms (or "Main Street Lending"). Our paper develops a new framework to compare and contrast these different policies. For the Great Recession, characterized by impaired balance sheets of financial intermediaries, Main Street Lending and Wall Street QE are perfect substitutes and both stimulate aggregate demand. In contrast, for the COVID-19 recession, where non-financial firms faced significant cash flow shortages, Wall Street QE is almost completely ineffective, whereas Main Street Lending can be highly stimulative.

"I Could Be Unemployed the Rest of the Year”: Unprecedented Times and the Challenges of "Making More”

The COVID-19 pandemic has been unprecedented in many ways, but perhaps no more so than in the sudden expansion of—and increase in—unemployment assistance benefits. We ask how precarious workers, many of whom were "hustling” for money or engaged in creative fields, feel about making more on unemployment. How are they using the funds? We draw on remote interviews and online surveys with 199 gig and precarious workers in New York City during the first wave of the pandemic. We find that workers are ambivalent about unemployment assistance and concerned that a financial influx today portends a shortage tomorrow. This "specter of the unknown” affected workers' use of their benefits. As a result, even though the Coronavirus Aid, Relief, and Economic Security Act was intended to mitigate the social and economic impact of the pandemic, these programs—despite being helpful—may have also contributed to precarious workers becoming even more certain of their insecurity.

Reinstating fiscal policy for normal times: Public investment and Public Jobs Programmes

This paper upholds the classical Keynesian position that a laissez-faire market economy lacks a spontaneous tendency to full employment. Focusing on the UK case, it argues that monetary policy could not prevent the economic collapse of 2008-9 or achieve full recovery from the Great Recession that followed. The paper then outlines the case for fiscal policy to regain a permanent status of primacy in modern macroeconomic management, beyond the pandemic emergency. It distinguishes between public investment and automatic stabilisers, reducing discretionary actions to a minimum. It presents the case for re-empowering the State'spublic investment function and for reforming the system of automatic counter-cyclical stabilisers by means of public jobs programmes.

Managing the COVID-19 crisis by fiscal strategies: Lessons from four countries

The COVID-19 Crisis is urgent, global in scale, and has generated a massive impact globally. During the outbreak of the crisis, well-designed fiscal strategies play a critical role in effective crisis management. This article uses an international and comparative perspective to find fiscal strategies used by four countries including China, South Korea, the United States, and Italy to manage the COVID-19 crisis for the period of April 2020 to December 2021. It examines key similarities and differences regarding to these major fiscal strategies adopted by the four countries. This article offers important lessons and summarizes effective practices for other countries that were considering fiscal strategies to manage and deal with the economic and fiscal impacts induced by the COVID-19 crisis.

Economy: Exceptionality as a driver of structural change in the Basque Autonomous Community and Navarre

The global pandemic generated a crisis of still unpredictable consequences, further aggravated by the war in Ukraine. In 2008 a broad consensus had emerged on the need for far-reaching reforms, which basically meant doing away with the neoliberal consensus that had prevailed since the 1980s, although the chances of recovery were soon made dependent on the economic cycle. Once again, the current crisis is calling into question the quality and effectiveness of the social protection system and the welfare state itself. The responses seem to indicate a change of direction, towards safeguarding and strengthening the public sector. The Basque Country and Navarre are affected too. Two symptoms of this are the reinforcement of investment in health, which implies reversing previous cuts, and the approval of systems to cover the most disadvantaged groups. These measures require, however, the backing of other structural measures, particularly fiscal ones. © 2023, Onati International Institute for the Sociology of Law. All rights reserved.

Economic Uncertainty and Firms' Capital Structure: Evidence from China

This article assesses the effects of economic uncertainty on the corporate capital structure of Chinese-listed firms using a panel dataset of 1138 firms with A-shares traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange for the period 2006–2020 and fixed-effect regression analysis. Economic uncertainty had a negative influence on Chinese firms' debt ratios, especially for non-state-owned enterprises. Furthermore, firms' leverage decreased on average during the 2008 Great Recession, whereas it increased during the 2018–2019 US–China Trade War and the 2020 COVID-19 pandemic. The findings provide quantitative evidence of the effects of economic uncertainty on the capital structure of firms in a transition economy.

Migrant Construction Workers in Times of Crisis: Worker Agency, (Im)mobility Practices and Masculine Identities among Albanians in Southern Europe

This book explores how migrant construction workers in Southern Europe faced unemployment and precarious work conditions during and after the Great Recession. By drawing on rich qualitative data, it investigates the experiences of Albanian men within and beyond the workplace, and sheds light on the capacity of migrant builders to deal with economic hardships and the role of their families and masculine identities in shaping their coping practices. This book suggests a new framework for the study of coping practices among migrant (construction) workers, and adds to the study of integration processes in Southern European countries by comparing the narratives of settled migrants in Italy and Greece. This book also looks at the effects of the COVID-19 pandemic on migrant builders' lives in Southern Europe. By adopting an interdisciplinary approach, this book is of interest both to students and researchers in the field of migration studies and those working in the fields of sociology, geography, anthropology, political science and economics. © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2022.

Synchronization in Cycles of China and India During Recent Crises: A Markov Switching Analysis.

We study the impact of recent crisis episodes viz. the Great Recession of 2007-09, the Euro Area crisis of 2010-12 and the COVID-19 pandemic of 2020-21 on the Emerging Market Economies (EMEs) of China and India using data from January, 1986 till June, 2021. A Markov-switching (MS) analysis is applied to discern economy-specific cycles/regimes and common cycles/regimes in the growth rates of the economies. We apply the univariate MS Autoregressive (MS-AR) model to characterize country-specific negative growth, moderate growth and high growth regimes of China and India. We examine the extent of overlap of the identified regimes with the Great Recession, the Eurozone crisis, and the COVID-19 pandemic. Thereafter, we study the regimes depicting common phases in growth rates of China-India and China-India-US by using multivariate MS Vector Autoregressive (MS-VAR) models. The multivariate analysis shows the presence of common negative growth during the turbulent periods during the study period. These results can be explained by the existence of strong trade and financial linkages between the two EMEs and the Advanced economies. The pandemic triggered a recession in the Chinese, Indian and U.S. economies and its impact on growth is much worse than the Great Recession and the Eurozone crises.

Fiscal Stabilization in the United States: Lessons for Monetary Unions

The debate about the use of fiscal instruments for macroeconomic stabilization has regained prominence in the aftermath of the Great Recession, and its relevance has suddenly increased further, after the recent Covid-19 shock. The analysis of fiscal stabilization in the United States, a monetary union equipped with a common fiscal capacity, has often informed the literature on the European EMU and could serve as a reference for its possible future reforms. This paper expands that literature in three ways: first, by measuring stabilization not only as inter-state risk-sharing of asymmetric shocks, but also as intertemporal stabilization of common shocks;second, by doing this for specific items in the US federal budget, both on the revenue and on the expenditure side;and third, by also measuring the impact of the federal system of unemployment benefits and of its extension as a response to the Great Recession. Corporate and personal income tax, on the revenue side, and social security benefits and federal grants, on the spending side, are the most effective items. The US federal system of unemployment insurance provides great stabilization in the event of a large shock, in particular when enhanced by the discretionary program of extended benefits. These findings imply that a proper design of the budget can maximize its stabilization effect, when it helps bridging the gap between higher mobility of capital and lower mobility of labor, by collecting revenues based on the income of the most mobile factor (corporate income tax) and providing support to the income of the least mobile factor (social security).

Job loss and food insecurity during the Covid-19 pandemic

PurposeLiving a nutritious lifestyle requires that people get a sufficient amount of nutrients, vitamins and minerals every day. Healthy dietary practices are related to a stronger immune system, better prevention and easier recovery from illnesses, lower blood pressure, healthy weight, lower risk of diabetes, heart problems and other medical conditions and improved overall well-being (WHO, 2020). Therefore, to maintain a strong immune system able to prevent diseases and ease recovery, optimal nutrition and healthy habits are of increased importance during a pandemic such as Covid-19. However, according to the Bureau of Labor Statistics, more than 22 million Americans have lost a job between February and October 2020, increasing the unemployment rate from 3.5% in February 2020 to 6.9% in October 2020, reaching a peak of 14.7% in April 2020. Job losses during the Covid-19 crisis are likely to put lots of families at risk of malnutrition and food insufficiency and to further deteriorate the already existing food insecurity (Gundersen et al., 2018). This research explores the effect of a recent job loss between August and October 2020 on food sufficiency.Design/methodology/approachThis research examines the impact of a job loss on nutrition and food safety. Specifically, this study explores the effect of a job loss during the Covid-19 pandemic on the level of family and child food sufficiency as perceived by the respondent, confidence about meeting family's dietary needs in the four weeks following the interview, and an indicator of whether the food sufficiency status of the family has deteriorated or not. This study also determines the differential effect of a job loss by individuals who are still employed despite the loss relative to workers who remained unemployed after a job loss during the Covid-19 crisis. Subsample analyses based on ethnicities, genders and educational attainment are also performed to identify the most vulnerable groups.FindingsThe results provide evidence that a job loss is associated with a highly statistically significant deterioration of food sufficiency for families and children and a reduction in the confidence in food security for the near future. This effect is observed for all job losers, but from them, it is larger for the ones who are currently unemployed compared to those who are working. The association between a job loss and family's nutrition insecurity is the greatest for Hispanic, males and people with some college. Children's nutrition suffers the most for children whose parents have not completed high school. These results provide an insight into the adverse effect of Covid-19 on food security.Practical implicationsFrom a policy perspective, the results indicate that federal nutrition programs whose goal is to ensure that the dietary needs of Americans, and especially children, are met, which are most likely to benefit the Hispanic population, individuals with low educational attainment and individuals who remained unemployed after losing a job.Originality/valueThis study makes several contributions to the growing literature on food security. First, this study is novel in that it examines the effect of an ongoing event, specifically a labor market disruption as a result of a health and economic crisis, on families' nutrition, and does so using the newest publicly available data designed to track the impact of Covid-19 on the American population. This is one of the first studies that investigates the forementioned impacts in the context of the Covid-19 pandemic. This study further contributes to the literature by distinguishing between employed versus unemployed individuals despite a job loss and by studying distinct groups on the population. In addition, this study compares the effects of interest in the onset of the pandemic to a year later to examine the population's adjustment to the crisis. The importance and relevance of the results for policy decision-making are also discussed in the paper.

Unemployment - Corruption Relationship in OECD Countries: System GMM Approach

Corruption, abuse of public office for private gain, is mainly found to impact macroeconomic indicators adversely in the long run. In this vein, this paper investigates the impact of corruption on unemployment in Organization of Economic Cooperation and Development (OECD) countries between 1996-2020. Utilizing World Governance Indicators (WGI) corruption data and implementing the system generalized method of moments (GMM) methodology to overcome endogeneity and reverse causality issues, the results indicate that corruption increases unemployment in all models when various variables are controlled for. The robustness checks with alternative econometric estimations (i.e., difference GMM, fixed effect, and ordinary least squares (OLS) regressions) and corruption index (i.e., Corruption Perception Index (CPI)) verify the conclusion of system GMM that higher corruption leads to higher unemployment. However, the magnitude depends on the model and specification. The results reveal that specific policies should be implemented to eliminate corruption in political and bureaucratic spheres so that the unemployment rate can be maintained around the natural rate of each country.

The impact of COVID-19 on home value in major Texas cities

PurposeThis study aims to analyze the impact of COVID-19 on housing price within four major metropolitan areas in Texas: Austin, Dallas, Houston and San Antonio. The analysis intends to understand economic and mobility drivers behind the housing market under the inclusion of fixed and random effects.Design/methodology/approachThis study used a linear mixed effects model to assess the socioeconomic and housing and transport-related factors contributing to median home prices in four major cities in Texas and to capture unobserved factors operating at spatial and temporal level during the COVID-19 pandemic.FindingsThe regression results indicated that an increase in new COVID-19 cases resulted in an increase in housing price. Additionally, housing price had a significant and negative relationship with the following variables: business cycle index, mortgage rate, percent of single-family homes, population density and foot traffic. Interestingly, unemployment claims did not have a significant impact on housing price, contrary to previous COVID-19 housing market related literature.Originality/valuePrevious literature analyzed the housing market within the first phase of COVID-19, whereas this study analyzed the effects of the COVID-19 throughout the entirety of 2020. The mixed model includes spatial and temporal analyses as well as provides insight into how quantitative-based mobility behavior impacted housing price, rather than relying on qualitative indicators such as shutdown order implementation.

Organizing economies: Narrative sensemaking and communicative resilience during economic disruption

This dissertation unites organizational communication, and economic theory to understand how individuals make sense of economic crises, imbed power and logic in those understandings, and construct new economic realities in the aftermath of crisis. Contra economic orthodoxy, this project conceives of economy and economics as a social construct. As a social construct, individuals organize economy and economics through discourse, make sense of through narrative, and rebuild through communication. This dissertation combines different theoretical perspectives-actor-network theory, antenarrative organization theory, and the communication theory of resilience-to recenter social scientific accounts of economic reality around communication, story, and power. Specifically, I focus on two economic crises: the Great Recession and the COVID-19 Recession. By examining the discourse present in news media and individual accounts in these two economic disruption contexts, this dissertation explores how individuals, across varying levels of society, made sense of these economic crises in situ, rather than through retrospective accounts. Thus, this work examines economics as an organizational process, constituted in communication and narrative, and shaped by power and narrative logics. To these ends, two studies comprise this dissertation. The first study using news media combines the use of antenarrative grand narrative analysis to unpack how essentializing and mythologizing forces emerge within media accounts of economic crisis. By analyzing news media accounts of crucial dates across economic crisis contexts, this first study critiques the construction of societal macronarratives during crisis and uncovers how those narratives shape economic and social practices related to the crises. Next, the second study of this dissertation examines individual accounts of economic crises using antenarrative network analyses of social media and archival data related to the respective crises. Contra normative economic analyses, which often disregard individuals' experiences of crisis, this final study engages individuals' accounts of economic disruption on the social media platform Reddit to understand how individuals make sense of economic conditions and the power relations and processes that manifested them. These studies work in tandem to illustrate, throughout various levels of society, how societies organize their experiences of, and responses to, economic crises. These analyses contribute key insights related to: (a) how people respond to economic crisis, (b) how power and discourse shape those responses, (c) how economic theory interacts with these organizational processes, and (d) how scholars and policymakers can better respond to future economic disruptions. Further, the findings from these studies (1) form the basis for a communicative theory of nullification, (2) highlight the potential of communicated finality as an oppositional force to communicated resilience and (3) advance a practical agenda for addressing the legislative and parliamentary procedures through which governments and people enact economic resilience. (PsycInfo Database Record (c) 2023 APA, all rights reserved)

Productivity growth over the business cycle: cleansing effects of recessions

This paper investigates the impact of recent recessions on the origins of productivity growth. We show how business cycles affect productivity growth, with particular attention for the impact of job reallocation and labor hoarding. We find evidence that recessions induce productivity enhancing job reallocation in manufacturing but not in services industries and show that labor hoarding mitigates this cleansing effect of recessions. Furthermore, we show how entry and exit of firms and industry dynamics shape the evolution of aggregate productivity.Plain English SummaryDuring recessions, governments support firms via temporary unemployment programs to save jobs. A side effect is that job reallocation and exit of low-productive firms can be distorted, while such cleansing effects typically spur productivity growth. This paper investigates how recessions affect productivity growth, with particular attention for the impact of job reallocation and labor hoarding. We find evidence that recessions induce productivity enhancing job reallocation in manufacturing but not in services industries and show that labor hoarding mitigates this cleansing effect of recessions. Furthermore, we show how entry and exit of firms and industry dynamics shape the evolution of aggregate productivity. As many developed economies struggle with a slowdown in productivity growth, it is important that policy makers understand the impact of recessions on the micro origins of productivity growth and are aware of how temporary policies during recessions could affect long-term productivity growth.

The COVID Cash Transfer Study: The Impacts of a One-Time Unconditional Cash Transfer on the Well-Being of Families Receiving SNAP in Twelve States

There is growing interest in the use of unconditional cash transfers as a means to alleviate poverty, yet little is known about the effects of such transfers in the U.S. This paper reports on the results of a randomized controlled study of a one-time $1,000 unconditional cash transfer in May 2020 to families with low incomes in 12 U.S. states. The families were receiving, or had recently received, Supplemental Nutrition Assistance Program benefits. We examine the impact of the cash transfer on five pre-registered outcomes (material hardship, mental health, parenting, child behavior, partner relationships) and several secondary outcomes (hardship avoidance, consumption, employment, benefit use). We find no statistically significant effects (powered to detect effects of 0.09 standard deviations) of the cash transfer on any outcomes for the full sample. In pre-specified exploratory analyses, we find significant reductions in material hardship (-0.17 standard deviations) among families with less than $500 of earnings in the previous month, roughly the bottom 50 percent of monthly earnings for the study sample.

Teaching an undergraduate elective on the Great Recession (and the COVID-19 recession too)

The authors describe an undergraduate economics elective focused on the Great Recession and the recession resulting from the COVID-19 pandemic. They have taught the course with great success at both liberal arts colleges and research universities and at all levels of the curriculum ranging from a first-year seminar to an upper-level elective. They present a roadmap for instructors interested in offering the class. Although intermediate macroeconomics is assumed as a prerequisite, the authors discuss how they have adapted the class for students with different backgrounds. The course is divided into seven units: the housing bubble and asset pricing, housing policy and history, propagation and panic, monetary policy, fiscal policy, aftermath and international perspectives, and the macroeconomics of COVID-19. Sample assignments and readings are both provided. © 2022 Taylor & Francis Group, LLC.

Firm entry and exit during recessions

We analyze aggregate shocks in a general equilibrium model of firm dynamics with entry and exit and financial frictions. Compared to the productivity shock, a shock to the collateral constraint (credit shock) generates a larger change in firm entry and exit. Calibrating the credit and productivity shocks to the Great Recession, we find that the credit shock accounts for lower entry, higher exit, and the concentration of exit among young firms during the Great Recession. The changes in entry and exit account for 19 and 24 percent of the fall in output and hours, respectively. Furthermore, we discuss how the modeling of potential entrants matters for the quantitative results, and perform a COVID-19 lockdown experiment. © 2021 Elsevier Inc.

Are medium-sized cities strong nodes in the settlement system? Demographic trends of Italian provincial capitals from 2000 to the Covid-19 pandemic

Medium-sized cities are an important component of the settlement system and are often described as a joining link between urban and rural areas. However, in recent decades they have been impacted by growing competition from large cities which have tremendous appeal for the post-Fordist economy and for various segments of the population. This paper analyses the demographic trajectories of 99 medium-sized cities in Italy with provincial capital status, from the beginning of the twenty-first century to the outbreak of the COVID-19 pandemic. Over a twenty-year period marked by many difficulties for the Italian economy in an international context, what has the demographic performance of these cities been? The research addresses two areas. On the one hand, it analyses the demographic vitality of the provincial capitals compared to the metropolitan centres;on the other, it follows the redistribution of populations in the provincial capitals' urban areas, which coincide with the employment areas (Sistemi locali del lavoro). Significant behavioural discontinuities emerge between the decade of 2000-2010 and the following decade, which was characterised by a gradual recovery after the shock of the Great Recession. The picture was changed further by the COVID-19 pandemic. Furthermore, persistent differences between the medium-sized cities of Northern and Southern Italy stand out, but so do new internal divisions within the country, reframing this historical dualism. © Institute of Geography and Spatial Organization Polish Academy of Sciences • Warsaw • 2022.

COVID-19, the Great Recession and Economic Recovery: A Tale of Two Crises.

COVID-19 caused a major economic downturn, the like of which had not been seen since the Great Recession although the underlying causes of the two crises were very different; systemic risk versus a virus. Here we look at how flexible work practices, allied with adequate supports and lifelong learning opportunities, aided economic recovery following the earlier crisis in order to see if there are any lessons to be learnt for post-pandemic recovery. Overall, the results indicated that flexicurity provided a modest growth dividend during the Great Recession, typically no more than one percentage point. Of the individual components, the short-run results indicated that security along with life-long learning and part-time work proved the most beneficial, although flexible work practices also boosted growth, albeit to a lesser extent. For flexible labour markets, the long-run results indicated that the growth gains were highest in trusting economies with, or without, social partner engagement.