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Policy instruments facilitate China's COVID-19 work resumption.

Pengjun Zhao1,2,3, Qiyang Liu1,2, Tianyu Ma1,2

  • 1School of Urban Planning and Design, Peking University, Shenzhen Graduate School, Shenzhen 518055, China.

Proceedings of the National Academy of Sciences of the United States of America
|October 2, 2023
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Summary

Governments worldwide implemented stimulus packages to boost post-COVID-19 labor force remobilization. Tailored strategies considering local capacity and sector needs are crucial for effective economic recovery and work resumption.

Keywords:
COVID-19ChinaFogg behavior modelpolicy instrumentswork resumption

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Area of Science:

  • Economics
  • Public Policy
  • Sociology

Background:

  • Governments globally introduced stimulus measures to address the COVID-19 recession and facilitate labor force remobilization.
  • The effectiveness of these post-COVID-19 recovery strategies remains unclear, particularly regarding large-scale work resumption.

Purpose of the Study:

  • To analyze the factors influencing large-scale work resumption in China post-COVID-19.
  • To model work resumption as a collective behavioral change influenced by capacity, motivation, and policy instruments.

Main Methods:

  • Qualitative comparative analysis of a large-scale prefecture-level dataset.
  • Analysis included human mobility trajectory data for 320 million workers and 500,000 policy documents in China.

Main Results:

  • Stimulus effectiveness varied significantly across Chinese prefectures, dependent on fiscal capacity, administrative capability, and policy motivation.
  • Subnational fiscal and procurement policies were more effective for wholesale, retail, hotel, and catering sectors.
  • Manufacturing and business services sectors required more targeted employment policies for recovery.

Conclusions:

  • Simultaneous adoption of fiscal, employment, and procurement policies can hinder post-COVID-19 work resumption if prefectural capacity is limited or policy motivation wavers.
  • Tailored post-crisis recovery strategies are essential, considering local administrative and fiscal capacities, alongside the specific sectoral economic structure.