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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...

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Autores principales: Gupta, Sumedha, Montenovo, Laura, Nguyen, Thuy, Lozano-Rojas, Felipe, Schmutte, Ian, Simon, Kosali, Weinberg, Bruce A., Wing, Coady
Formato: Online Artículo Texto
Lenguaje:English
Publicado: 2023
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.
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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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