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The impact of COVID-19 infection on labor outcomes of Mexican formal workers

Eva Arceo-Gomez, Raymundo M. Campos-Vazquez, Gerardo Esquivel (), Eduardo Alcaraz, Luis A. Martinez and Norma G. Lopez

World Development Perspectives, 2023, vol. 29, issue C

Abstract: The outbreak of the COVID-19 pandemic had an immediate and severe impact on the economy. However, we do not know whether the disease may have a longer-term effect on people's employment opportunities. In this study, we focus on the effects of COVID-19 infection on labor market outcomes 12 months after diagnosis. We use a unique dataset that includes all formal private sector workers in the Mexican social security system and that links health outcomes with administrative records. We implement two alternative identification strategies to estimate the impact: matching estimators and individual fixed effects models. Our study finds that COVID-19 infection does not harm employment probabilities or wages. On the contrary, we find that workers who had tested positive for COVID had a higher likelihood of keeping their formal sector jobs and higher wages than those who did not. Moreover, our results describe mostly low-income workers.

Keywords: Employment; Wage; COVID; Mexico (search for similar items in EconPapers)
JEL-codes: I10 I15 J20 J23 O54 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wodepe:v:29:y:2023:i:c:s2452292923000048

DOI: 10.1016/j.wdp.2023.100488

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