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Table 1 Discretionary policy changes during the Coronavirus Crisis in the United States and Germany (dating corresponds to date of passage)

From: Germany and the United States in coronavirus distress: internal versus external labour market flexibility

Germany

United States

2020Q1

Short-time work

• Simplified eligibility criteria

• 100% reimbursement of social insurance contributions for hours affected by STW

• Expansion of additional income opportunities during STW

Short-time work

• Federal financial support for states’ STC schemes

Business support

Soforthilfen: grants for small businesses & self-employed, administrated by Länder

• Loans and credit guarantees

Business support

Paycheck Protection Program (PPP): forgivable loans to SME

Employee Retention Tax Credit: payroll tax credit for employers

• Tax credits for obliged paid leave by employees

Disaster Loans Program: Federal Funding of loans from Small Businesses Administration

Unemployment benefits

• Simplified eligibility criteria for basic income support (ALG II) (e.g., further inclusion of self-employed, suspension of means testing)

Unemployment benefits

Federal Pandemic Unemployment Compensation (FPUC): additional benefit of $600 per week until end of July

Pandemic Emergency Unemployment Compensation (PEUC): extension of max. eligibility period

Pandemic Unemployment Assistance (PUA): simplified eligibility criteria (e.g., inclusion of self-employed)

Income support (households)

• Simplified eligibility criteria for child supplements                                    • Compensation for earnings losses due to child care

Income support (households)

• Child Tax Credits

• Economic Impact Payments: Stimulus checks for households per eligible adult ($1200) and child ($500)

• Obligation to SME to provide paid sick leave, paid family leave, paid medical leave

2020Q2

Short-time work

• Extension of maximum eligibility period

• Temporary increase in replacement rates until end of 2020

Business support

• Improved conditions regarding loans and forgiveness of loans (June)

• Amendment of PPP: Provision of additional $320 bn. (April)

Unemployment benefits

• Expansion of max. eligibility period for unemployment insurance (ALG I) by three months

2020Q3

Business support

• Grants for SME & self-employed (Überbrückungshilfe)

• Hiring credit for apprentices for SME of €2000

Unemployment benefits

• Extension and modification of expiring FPUC: $300 per week and conditioning eligibility on receiving at least $100 from other state unemployment benefits

Unemployment benefits

•Extension of simplified eligibility criteria for ALG II

Income support (households)

•Provision of assistance to renters and homeowners

Income support (households)

• Stimulus Checks for families: €300 per child (Kinderbonus)

• Tax Credits for single parents

• Expansion of max. eligibility period for elderly/child care compensation

• Temporary VAT reduction

2020Q4

Short-time work

• Extension of the key measures until end of 2021

Business support

• Modification & extension of different programs (i.a., the Employee Retention Tax Credit, PPP, etc.)

Business support

• Grants for foregone revenues (November-/Dezemberhilfen)

• Grants for SME (Überbrückungshilfe II)

Unemployment benefits

• FPUC: $300 per week until March 2021

• PEUC applies until March 2021, expansion of max. eligibility period to 24 weeks

• PUA applies until March 2021; expansion of max. eligibility period to 50 weeks

Income support (households)

 • Economic Impact Payments for adults ($600) and children ($600)

  1. Sources: Federal Ministry of Labour and Social Affairs, Federal Ministry of Finance, Steffen (2021) for Germany; U.S. Government, Chetty et al. (2020), Houseman (2022) for United States