The result builds on earlier work. For another paper that associates lower participation and opioids, see this 2017 research by Princeton University’s Alan Krueger. For a more contrarian take, check out this 2018 Janet Currie piece, which finds no simple tie in which prescriptions drive labor force outcomes.
During the Great Recession, 25 of 33 OECD countries used so-called “short-term work schemes” to keep people on the job. The programs give companies subsidies to cut their workers’ hours, rather than slashing employment overall. The cash is used partly to pay employees for lost hours. This Bank of England post makes the case that the schemes did have significant aggregate effects, helping workers to hang onto jobs when times were bad.
Goldman Sachs economists are skeptics. In a March 10 research note, they questioned the idea that inflation expectations have actually become un-anchored to the downside, pointing out that household inflation expectations have fallen as outliers who were anticipating really quick price gains have cut their forecasts. But even if expectations were to slip, the researchers say it’s unlikely that Fed officials could move inflation expectations higher with small tweaks to their target: only about 20 percent of households know what the Fed’s target is in the first place.
This article provided by Bloomberg News.