Germany saved its workers from unemployment and spent less money per person than the US by using a workshare model. Here's how it works. (via propublica)
Instead of leaving business to lay off workers who are then left to fight for benefits that take wait weeks or months to arrive , the government in Germany has been using a 'workshare' model to directly subsidize employer payrolls.
But neither Hamann nor anyone else in her group lost their job. Instead, they were kept on and, even while having zero clients, received 60% of their normal pay. As about half her clients gradually started to return in recent weeks, she began making 80% of her usual pay . And she was able to do so without having to negotiate any paperwork or online bureaucracy; she and her coworkers simply signed a form from their employer.
It might be tempting to view workshare as a luxury of the stronger safety nets in Europe and the high taxes that pay for them. But the lofty tax rates in Germany mostly fund generous coverage for illness, disability, and pensions. When it comes to unemployment, according to Houseman and other economists, the US and Germany spend comparable amounts per person. Both approaches are costing governments on either side of the ocean tens of billions of dollars.
Like Hamann, Woloszynski saw her practice, which is in Palm Harbor on the Florida Gulf Coast, essentially shut down for a couple weeks. The clientele had already been shrinking for several weeks, when, on March 21, the staff learned that another employee at the practice, in the billing department, had gone to the emergency room and been tested for COVID-19. The practice shut for two weeks.
And then came the nightmare of applying for unemployment benefits. She managed to get two $600 payments of federal Pandemic Unemployment Assistance for gig workers. But when she applied for regular unemployment benefits, the state deemed her ineligible. She couldn't ascertain why but thought it was perhaps because she hadn't worked at the job long enough. She logged on to the website every other day to try to press forward with her application.
Meteer went to file for state unemployment benefits and was quickly in a morass. Early in the crisis, as her caseload was already being reduced, she had filed for benefits for a temporary reduction in hours, which would have paid her about a third of her weekly gross pay.
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