Local Variations in the Labour Market Impact of COVID-19

Richard Dorsett and Jessica Hug

Economic Statistics Centre of Excellence (ESCoE) Discussion Papers from Economic Statistics Centre of Excellence (ESCoE)

Abstract: This paper provides new evidence on the disruption brought by the coronavirus (COVID-19) pandemic to local labour markets in the U.K.. After presenting key trends on local labour markets, a matching function is estimated using monthly data on vacancies and unemployment. This matching function is specified to capture local variations in efficiency. These estimates of labour market efficiency are then included in an individual-level regression of year-on-year transitions between employment, unemployment and inactivity. The results show that, for males, living in an area with a more efficient labour market pre-COVID was associated with a reduced likelihood of being unemployed in 2021 but that for females there was no such association.

Keywords: efficiency; labour market transitions; matching function (search for similar items in EconPapers)
JEL-codes: E24 J63 J64 (search for similar items in EconPapers)
Date: 2022-07
New Economics Papers: this item is included in nep-hea and nep-ure
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