The impacts of Covid-19 absences on workers

Gopi Goda and Evan J. Soltas

Journal of Public Economics, 2023, vol. 222, issue C

Abstract: We show that Covid-19 illnesses and related work absences persistently reduce labor supply. Using an event study, we estimate that workers with week-long Covid-19 absences are 7 percentage points less likely to be in the labor force one year later compared to otherwise-similar workers who do not miss a week of work for health reasons. Our estimates suggest Covid-19 absences have reduced the U.S.labor force by approximately 500,000 people (0.2 percent of adults) and imply an average labor supply loss per Covid-19 absence equivalent to $9,000 in forgone earnings, about 90 percent of which reflects losses beyond the initial absence week.

Keywords: Covid-19; Coronavirus; Labor supply; Work absence; Participation (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:222:y:2023:i:c:s0047272723000713

DOI: 10.1016/j.jpubeco.2023.104889

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