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Effects of social distancing policy on labor market outcomes
US workers receive unemployment benefits if they lose their job, but not for reduced working hours. In alignment with the benefits incentives, we find that the labor market responded to COVID-19 and related closure-policies mostly on the extensive (12 pp outright job loss) margin. Exploiting timing...
Autores principales: | , , , , , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10635474/ https://www.ncbi.nlm.nih.gov/pubmed/37946719 http://dx.doi.org/10.1111/coep.12582 |
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author | Gupta, Sumedha Montenovo, Laura Nguyen, Thuy Lozano-Rojas, Felipe Schmutte, Ian Simon, Kosali Weinberg, Bruce A. Wing, Coady |
author_facet | Gupta, Sumedha Montenovo, Laura Nguyen, Thuy Lozano-Rojas, Felipe Schmutte, Ian Simon, Kosali Weinberg, Bruce A. Wing, Coady |
author_sort | Gupta, Sumedha |
collection | PubMed |
description | US workers receive unemployment benefits if they lose their job, but not for reduced working hours. In alignment with the benefits incentives, we find that the labor market responded to COVID-19 and related closure-policies mostly on the extensive (12 pp outright job loss) margin. Exploiting timing variation in state closure-policies, difference-in-differences (DiD) estimates show, between March 12 and April 12, 2020, employment rate fell by 1.7 pp for every 10 extra days of state stay-at-home orders (SAH), with little effect on hours worked/earnings among those employed. Forty percentage of the unemployment was due to a nationwide shock, rest due to social-distancing policies, particularly among “non-essential” workers. |
format | Online Article Text |
id | pubmed-10635474 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
record_format | MEDLINE/PubMed |
spelling | pubmed-106354742023-11-09 Effects of social distancing policy on labor market outcomes Gupta, Sumedha Montenovo, Laura Nguyen, Thuy Lozano-Rojas, Felipe Schmutte, Ian Simon, Kosali Weinberg, Bruce A. Wing, Coady Contemp Econ Policy Article US workers receive unemployment benefits if they lose their job, but not for reduced working hours. In alignment with the benefits incentives, we find that the labor market responded to COVID-19 and related closure-policies mostly on the extensive (12 pp outright job loss) margin. Exploiting timing variation in state closure-policies, difference-in-differences (DiD) estimates show, between March 12 and April 12, 2020, employment rate fell by 1.7 pp for every 10 extra days of state stay-at-home orders (SAH), with little effect on hours worked/earnings among those employed. Forty percentage of the unemployment was due to a nationwide shock, rest due to social-distancing policies, particularly among “non-essential” workers. 2023-01 2022-09-11 /pmc/articles/PMC10635474/ /pubmed/37946719 http://dx.doi.org/10.1111/coep.12582 Text en https://creativecommons.org/licenses/by-nc-nd/4.0/This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial‐NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made. |
spellingShingle | Article Gupta, Sumedha Montenovo, Laura Nguyen, Thuy Lozano-Rojas, Felipe Schmutte, Ian Simon, Kosali Weinberg, Bruce A. Wing, Coady Effects of social distancing policy on labor market outcomes |
title | Effects of social distancing policy on labor market outcomes |
title_full | Effects of social distancing policy on labor market outcomes |
title_fullStr | Effects of social distancing policy on labor market outcomes |
title_full_unstemmed | Effects of social distancing policy on labor market outcomes |
title_short | Effects of social distancing policy on labor market outcomes |
title_sort | effects of social distancing policy on labor market outcomes |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10635474/ https://www.ncbi.nlm.nih.gov/pubmed/37946719 http://dx.doi.org/10.1111/coep.12582 |
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