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Effects of the Covid-19 Pandemic on the Colombian Labor Market: Disentangling the Effect of Sector-Specific Mobility Restrictions

Leonardo Morales (), Leonardo Bonilla-Mejía (), Jose Pulido (), Luz Florez (), Didier Hermida (), Karen L. Pulido-Mahecha () and Francisco Lasso ()
Additional contact information
Leonardo Bonilla-Mejía: Banco de la República de Colombia
Didier Hermida: Banco de la República de Colombia
Karen L. Pulido-Mahecha: Banco de la República de Colombia

Authors registered in the RePEc Author Service: Leonardo Bonilla Mejia ()

Borradores de Economia from Banco de la Republica de Colombia

Abstract: We assess the effect of the Covid-19 pandemic and the lockdown of some economic sectors on the Colombian labor market. We exploit the variation between excluded and non-excluded sectors from the lockdown, as well as the timing of the restriction policies, to identify the effect of sector-specific restriction policies. These restrictions had negative effects on employment, accounting for approximately a quarter of the total job loss between February and April of 2020; the remaining three quarters of the job losses could be attributed to the regional patterns of the disease spread, and other epidemiological and economic factors affecting the whole country during this period. Therefore, we should expect important employment losses even in the absence of such restrictions. In contrast, we find no significant effect of sector-specific restrictions on average worked hours or wages, indicating that most of the adjustment of the labor market took place in the extensive margin. Moreover, sectorspecific restrictions only affect salaried workers, while self-employment is more responsive to the disease spread. **** RESUMEN: En este trabajo evaluamos el efecto de la pandemia de Covid-19 y las restricciones de movilidad sectoriales en el mercado laboral colombiano. Para identificar el efecto de estas políticas, explotamos la variación en el empleo y salarios en los sectores excluidos y no excluidos de las restricciones a la movilidad, así como el momento de su implementación. Las restricciones sectoriales a la movilidad tienen efectos negativos en el empleo, representando aproximadamente una cuarta parte de la pérdida total de empleo entre febrero y abril de 2020. Los patrones regionales de propagación de la enfermedad y otros componentes epidemiológicos y económicos, que afectaron al país durante este período, representan las tres cuartas partes restantes de la pérdida de empleos. Por lo tanto, debemos esperar importantes pérdidas de empleo incluso en ausencia de dichas restricciones. No encontramos un efecto significativo en el promedio de horas trabajadas o los salarios, lo que indica que la mayor parte del ajuste del mercado laboral tuvo lugar en el margen extensivo (empleos). Además, las restricciones a la movilidad sectoriales afectan principalmente a los trabajadores asalariados, mientras que el trabajo por cuenta propia responde principalmente a la propagación de la enfermedad.

Keywords: Covid-19; mobility restrictions; labor market; employment; Covid-19; mobility restrictions; labor market; employment. (search for similar items in EconPapers)
JEL-codes: I14 I18 J21 (search for similar items in EconPapers)
Pages: 29
Date: 2020-09
New Economics Papers: this item is included in nep-lam and nep-lma
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https://doi.org/10.32468/be.1129

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Journal Article: Effects of the COVID‐19 pandemic on the Colombian labour market: Disentangling the effect of sector‐specific mobility restrictions (2022) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:1129

DOI: 10.32468/be.1129

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