Are Bank Holidays Bad for Productivity? Not in the EU it Seems

Open Access

Abstract

Amongst concerns about slowing growth prospects and with the war in Ukraine intensifying cost of living pressures, the extra day off for the Queens Platinum Jubilee has reignited the discussion over the economic costs of bank holidays. The worry is that economic output and productivity suffers. In this case of course two bank holidays together mean that the whole week may be lost for some sectors, like manufacturing and construction. Yes, retail and hospitality and tourism may gain but the rest of the economy loses as it is forced to shut down