An Assessment of Job Retention Support During the COVID-19 Pandemic and its Aftermath in Belgium

Belgium deployed job retention schemes on an unprecedented scale during the COVID-19 pandemic, supporting nearly one in three jobs at the crisis peak. This review provides an in-depth assessment of job retention support during the pandemic and its aftermath in Belgium. It analyses the take-up of support throughout the pandemic, examining which types of firms and workers used the scheme most as well as its effects on the reallocation of workers to more productive firms. The review also provides a systematic comparison of Belgium's scheme with those of other OECD countries based on a new indicator of effective job retention support. With a focus on eligibility, work-sharing requirements and the generosity of support for workers and firms, it assesses the importance of policy design features for take-up during the pandemic. Drawing on occupation-level variation in exposure to containment measures, it evaluates the effectiveness of job retention schemes in preserving jobs. The findings offer practical guidance for policymakers to inform the refinement of job retention support for the future.