Economic Shocks and Worker Careers: Has the COVID-19 Pandemic Affected Transitions Out of Unemployment?

Mara Buhmann (), Laura Pohlan and Duncan H.W. Roth ()
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Mara Buhmann: Institute for Employment Research (IAB), Nuremberg
Duncan H.W. Roth: Institute for Employment Research (IAB), Nuremberg

No 17268, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Temporary economic shocks can have enduring effects on individuals and their career trajectories. This paper investigates the labour market effects of the Covid- 19 pandemic on newly unemployed individuals, the underlying mechanisms as well as occupation-specific effect heterogeneity. The results indicate long-lasting earnings losses due to the pandemic, which can be explained by a decline in employment in the short run and a decline in wages in the longer run. We further find that the lower the lockdown work ability of a worker's previous occupation, the greater the adverse effects of the pandemic.

Keywords: economic shocks; COVID-19; unemployment; worker careers; occupations (search for similar items in EconPapers)
JEL-codes: J23 J62 J64 (search for similar items in EconPapers)
Pages: 90 pages
Date: 2024-09
New Economics Papers: this item is included in nep-ipr and nep-lab
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