The Social Gradient in Employment Loss during COVID-19
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Forfattere:
Alstadsæter, Anette, Bernt Bratsberg, Simen Markussen, Oddbjørn Raaum, and Knut Røed
År:
2022
Referanse:
Frisch Rapport
Nummer i serie: 1
Sammendrag (engelsk)
We provide new evidence on the heterogeneous employment responses to the economic crisis induced by COVID-19. Utilizing monthly administrative pay records for all Norwegian employees, we document increases as well as reductions in employment and hours worked. With pre-crisis cohorts as controls, we use a difference-in-differences strategy to identify the effects of the crisis. Total pay (hours worked) dropped by 8% the first two months after the initial lockdown, followed by a quick recovery. By October 2021, we estimate a reduction in total hours worked of about 2%. The crisis affected prime-aged employees, senior workers, youth, and those initially unemployed differently. For prime-aged employees, we find monthly pay reductions in line with those for the whole economy. For senior wage earners and unemployed, the negative long-term employment effects were even larger. We identify significant social gradients, as persons with low past earnings, immigrants, and youth with a disadvantaged family background experienced more adverse consequences of the crisis.
Nøkkelord:
Labor demand shock; COVID-19; Employment; Social Gradient
JEL:
E24; J2; J4; J6; J11
Prosjekt info:
Oppdragsgiver: ForskningsrådetOppdragsgivers prosjektnr.: 316475
Frisch prosjekt: 1137 - The corona crisis and its economic consequences
Oppdragsgiver: NFR via NMBU
Oppdragsgivers prosjektnr.: 315769
Frisch prosjekt: 1677 - Employment, investment, and inequality in the aftermath of the Covid-19 crisis
Finansiering:
Norges Forskningsråd
