Working during COVID-19

Abstract

The outbreak of COVID-19 and the unprecedented measures taken by many countries to slow down the spread of the coronavirus caused large economic and psychological costs. This paper uses real time survey data from two waves run at the end of March and in mid-April to provide a snapshot of the actual labour market outcomes in twelve countries. Our study reveals large cross-country differences. At the end of March, when large disparity existed in the diffusion of the pandemic and in the lockdown measures, a large share of employed individuals had stopped working in France (38%) and Italy (47%), but much less in Australia (13%) and the US (10%). Large differences remained in mid-April. Yet, some common patterns emerge. Labour market outcomes varied according to workers’ educational attainments and occupation types. College graduates and white collars worked more from home and less from the regular workplace. Instead, low educated workers and blue collars were more likely to remain in the regular work place or to stop working. Similar patterns emerge with respect to the workers’ (family) income. This evidence suggests that initial labour market effects of COVID-19 (and of the lockdown measures) may have contributed to increase pre-existing inequalities.