Questions and answers about
the economy.

The short-term effect of Covid-19 on employment and wages

In this ongoing project, we examine the short-term consequences of Covid-19 on employment and wages in the united states. Guided by a pre-analysis plan, we document the impact of Covid-19 at the national-level using a simple difference and test whether states with relatively more confirmed cases/deaths were more affected. Our findings suggest that Covid-19 increased the unemployment rate, decreased hours of work and labor force participation and had no significant impacts on wages. The negative impacts on labor market outcomes are larger for men, younger workers, Hispanics and less-educated workers. This suggest that Covid-19 increases labor market inequalities. We also investigate whether the economic consequences of this pandemic were larger for certain occupations. We built three indexes using acs and o*net data: workers relatively more exposed to disease, workers that work with proximity to coworkers and workers who can easily work remotely. Our estimates suggest that individuals in occupations working in proximity to others are more affected while occupations able to work remotely are less affected. We also find that occupations classified as more exposed to disease are less affected, possibly due to the large number of essential workers in these occupations.

Lead investigator:

Abel Brodeur

Affiliation:

University of Ottawa

Primary topic:

Jobs, work, pay & benefits

Region of data collection:

North America

Country of data collection

USA

Status of data collection

Complete

Type of data being collected:

Publicly available

Unit of real-time data collection

Region/State

Read the results from this research