Quarantine policy and labor market outcomes

Asako Chiba, Shunsuke Hori and Taisuke Nakata

Macroeconomic Dynamics, 2026, vol. 30, -

Abstract: During the COVID-19 pandemic, many governments recommended quarantine to those who had close contact with infected individuals. We conducted a large-scale retrospective survey to study the consequences of such quarantine for labor outcomes. A sizable fraction of quarantined workers experienced reductions in hours worked and earnings, not only during quarantine but also after quarantine. Even uninfected workers experienced negative labor impacts, likely capturing the pure effects of quarantine independent of the effects of COVID-19 symptoms. Non-regular workers and workers without remote work options were more negatively affected by quarantine. We estimate that the quarantine resulted in a large reduction in the aggregate hours and that the reduction is mainly due to the scarring effects.

Date: 2026
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