Macroeconomics: UK economy, IB Economics
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Macroeconomics: UK economy, IB Economics
A brief overview of relevant articles for IB and A-Level all relating to the UK economy
Curated by Graham Watson
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Johnson’s Germany comparison highlights UK’s low sick pay | Coronavirus | The Guardian

Johnson’s Germany comparison highlights UK’s low sick pay | Coronavirus | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Proportion of UK worker’s salary covered is typically less than quarter of Germany’s 100% in first six weeks
Graham Watson's insight:

Strange to relate, but whilst the Prime Minister wants UK workers to be more 'German' in terms of staying away from work when infected with the coronavirus, he's also keen to overlook that the thing that's most likely to incentivise this - the rate of sick pay - in much more generous there. 

 

Indeed, whereas German workers get paid 100% of their income for the first six weeks of their illness, with the payments kicking in from day one, UK workers can expect to get around 19% of their income, and in the next month that's going to revert to pre-pandemic norms and only be payable from day four. We're all in this together - apart from when we aren't...

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‘Raise sick pay’ to lower virus health and economic risks

‘Raise sick pay’ to lower virus health and economic risks | Macroeconomics: UK economy, IB Economics | Scoop.it
It would manage a "crude" trade-off between lives and jobs as the UK economy reopens, a report says.
Graham Watson's insight:

Yesterday saw the release of a report by Sir Tim Besley and Sir Nicholas Stern that makes explicit the trade-offs between public health and the economy as a whole.

 

In it, they argue that the government should be looking to raise statutory sick pay and a way of mitigating the risks associated with coronavirus and other measures to try and keep the economy moving, but in a public health aware fashion. 

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