Economists from the IMF investigated 4 frequently proffered explanations:
- Generosity of Income Support Programs: They found only a modest and temporary effect on willingness to take jobs.
- Mismatch Between Available Jobs and Skills of Job Seekers: Explains less than one-fifth of U.S. worker shortage, even less in U.K.
- Mothers With Young Children Staying Out of Workforce Because of School Disruptions: Explains less than one-fifth of U.S. workers shortage, and has no effect in U.K. because nurseries there remained open during the pandemic.
- Older Workers Dropping Out of Workforce: By far the largest factor, accounting for ~35% of total labor shortage in both countries.
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