IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i15p9675-d881473.html
   My bibliography  Save this article

Evaluating the Effects of COVID-19 and Vaccination on Employment Behaviour: A Panel Data Analysis Acrossthe World

Author

Listed:
  • Ezzeddine Belgacem Mosbah

    (Department of Agribusiness and Consumer Sciences, King Faisal University, AlHasa 31982, Saudi Arabia
    Department of agricultural Economics, College of Agriculture Mograne, University of Carthage, Tunis 1054, Tunisia)

  • Parakramaweera Sunil Dharmapala

    (Houston South Campus, Fortis College, Houston, TX 77082, USA)

Abstract

COVID-19 is a fast-invading virus that quickly invaded the human body and made no human activity immune to its infections. The purpose of this study is to simulate the effects of COVID-19 on employment behaviour and vaccination’s weight in the recovery process. Based on quarterly panel data from 43 nations from 2018 to 2020, we built an adaptive employment model. The major findings demonstrate that COVID-19 has negative and large net and second effects, with parameters of −7049 and −15,768 employees each quarter for 100,000 infected people, respectively. While immunization has a positive net effect of 10,900 employees every quarter, it has a negative second effect of −29,817 employees. This last result may look strange, but it is rational and demonstrates that immunizations modify employees’ behaviour toward prevention measures, leading to actions such as resuming mobility, reopening, cancelling confinement, and so on, even though COVID-19 continues to spread. Demand, the labour force, the short-term multiplier, and immunization appear to have a positive and large impact on employment behaviour, while average labour productivity appears to have a negative impact.

Suggested Citation

  • Ezzeddine Belgacem Mosbah & Parakramaweera Sunil Dharmapala, 2022. "Evaluating the Effects of COVID-19 and Vaccination on Employment Behaviour: A Panel Data Analysis Acrossthe World," Sustainability, MDPI, vol. 14(15), pages 1-14, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9675-:d:881473
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/15/9675/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/15/9675/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sang Yoon (Tim) Lee & Minsung Park & Yongseok Shin, 2021. "Hit Harder, Recover Slower? Unequal Employment Effects of the COVID-19 Shock," Review, Federal Reserve Bank of St. Louis, vol. 103(4), pages 367-383, October.
    2. Fabrice Collard & Harris Dellas, 2007. "Technology Shocks and Employment," Economic Journal, Royal Economic Society, vol. 117(523), pages 1436-1459, October.
    3. Hamermesh, Daniel S, 1992. "A General Model of Dynamic Labor Demand," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 733-737, November.
    4. Mendolia, Silvia & Stavrunova, Olena & Yerokhin, Oleg, 2021. "Determinants of the community mobility during the COVID-19 epidemic: The role of government regulations and information," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 199-231.
    5. Yugang He & Yinhui Wang, 2022. "Macroeconomic Effects of COVID-19 Pandemic: Fresh Evidence from Korea," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    6. Achyuta Adhvaryu & A. V. Chari & Siddharth Sharma, 2013. "Firing Costs and Flexibility: Evidence from Firms' Employment Responses to Shocks in India," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 725-740, July.
    7. Damir STIJEPIC, 2020. "Employment effects of skills around the world: Evidence from the PIAAC," International Labour Review, International Labour Organization, vol. 159(3), pages 307-338, September.
    8. Virginia Gunn & Alejandra Vives & Alessandro Zaupa & Julio C. Hernando-Rodriguez & Mireia Julià & Signild Kvart & Wayne Lewchuk & Eva Padrosa & Mattias Philippe Vos & Emily Q. Ahonen & Sherry Baron & , 2022. "Non-Standard Employment and Unemployment during the COVID-19 Crisis: Economic and Health Findings from a Six-Country Survey Study," IJERPH, MDPI, vol. 19(10), pages 1-27, May.
    9. Fang, Hanming & Wang, Long & Yang, Yang, 2020. "Human mobility restrictions and the spread of the Novel Coronavirus (2019-nCoV) in China," Journal of Public Economics, Elsevier, vol. 191(C).
    10. Farboodi, Maryam & Jarosch, Gregor & Shimer, Robert, 2021. "Internal and external effects of social distancing in a pandemic," Journal of Economic Theory, Elsevier, vol. 196(C).
    11. Alexander W. Bartik & Marianne Bertrand & Feng Lin & Jesse Rothstein & Matthew Unrath, 2020. "Measuring the Labor Market at the Onset of the COVID-19 Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 239-268;316.
    12. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    13. Arindrajit Dube & T. William Lester & Michael Reich, 2016. "Minimum Wage Shocks, Employment Flows, and Labor Market Frictions," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 663-704.
    14. Antonio José Sánchez-Guarnido & Nuria Hidalgo & Jorge Arenas de la Cruz & Inmaculada Esteban & Silvia Mondón & Carlos Herruzo, 2021. "Analysis of the Consequences of the COVID-19 Pandemic on People with Severe Mental Disorders," IJERPH, MDPI, vol. 18(16), pages 1-11, August.
    15. Zhu, Guanghu & Chen, Guanrong & Fu, Xinchu, 2017. "Effects of active links on epidemic transmission over social networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 614-621.
    16. Caroline Orset, 2018. "People’s perception and cost-effectiveness of home confinement during an influenza pandemic: evidence from the French case," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(9), pages 1335-1350, December.
    17. Maria Palazzo & Iza Gigauri & Mirela Clementina Panait & Simona Andreea Apostu & Alfonso Siano, 2022. "Sustainable Tourism Issues in European Countries during the Global Pandemic Crisis," Sustainability, MDPI, vol. 14(7), pages 1-21, March.
    18. Evi Pappa, 2009. "The Effects Of Fiscal Shocks On Employment And The Real Wage," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 217-244, February.
    19. Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, vol. 84(1), pages 188-214, September.
    20. Colin Rogers, 2010. "The Principle of Effective Demand: The Key to Understanding the General Theory," International Economic Association Series, in: Robert W. Dimand & Robert A. Mundell & Alessandro Vercelli (ed.), Keynes’s General Theory After Seventy Years, chapter 9, pages 136-156, Palgrave Macmillan.
    21. Irfan Ahmad SOFI & Mohd Hussain KUNROO, 2018. "Demand shocks and employment adjustments: Does employment protection legislation create rigidity?," International Labour Review, International Labour Organization, vol. 157(3), pages 461-480, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mendolia, Silvia & Stavrunova, Olena & Yerokhin, Oleg, 2021. "Determinants of the community mobility during the COVID-19 epidemic: The role of government regulations and information," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 199-231.
    2. Bisin, Alberto & Moro, Andrea, 2022. "JUE insight: Learning epidemiology by doing: The empirical implications of a Spatial-SIR model with behavioral responses," Journal of Urban Economics, Elsevier, vol. 127(C).
    3. Boto-García, David, 2023. "Investigating the two-way relationship between mobility flows and COVID-19 cases," Economic Modelling, Elsevier, vol. 118(C).
    4. Ichino, Andrea & Favero, Carlo A. & Rustichini, Aldo, 2020. "Restarting the economy while saving lives under Covid-19," CEPR Discussion Papers 14664, C.E.P.R. Discussion Papers.
    5. Bo E. Honoré & Luojia Hu, 2023. "The COVID-19 pandemic and Asian American employment," Empirical Economics, Springer, vol. 64(5), pages 2053-2083, May.
    6. Xiao Chen & Hanwei Huang & Jiandong Ju & Ruoyan Sun & Jialiang Zhang, 2022. "Endogenous cross-region human mobility and pandemics," CEP Discussion Papers dp1860, Centre for Economic Performance, LSE.
    7. Alan Manning, 2021. "The Elusive Employment Effect of the Minimum Wage," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 3-26, Winter.
    8. Yim, Hyejin & Katare, Bhagyashree & Cuffey, Joel, 2022. "Does Increasing Minimum Wage Impact Service Quality? Evidence from Restaurant Food Safety Inspections," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322411, Agricultural and Applied Economics Association.
    9. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    10. Andrew G. Atkeson & Karen A. Kopecky & Tao Zha, 2024. "Four Stylized Facts About Covid‐19," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(1), pages 3-42, February.
    11. Hyejin Ku, 2022. "Does Minimum Wage Increase Labor Productivity? Evidence from Piece Rate Workers," Journal of Labor Economics, University of Chicago Press, vol. 40(2), pages 325-359.
    12. Dirk Krueger & Harald Uhlig & Taojun Xie, 2020. "Macroeconomic Dynamics and Reallocation in an Epidemic," PIER Working Paper Archive 20-015, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    13. Alberto Bisin & Andrea Moro, 2020. "Learning Epidemiology by Doing: The Empirical Implications of a Spatial-SIR Model with Behavioral Responses," NBER Working Papers 27590, National Bureau of Economic Research, Inc.
    14. Mauro Caselli & Andrea Fracasso & Sergio Scicchitano, 2022. "From the lockdown to the new normal: individual mobility and local labor market characteristics following the COVID-19 pandemic in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1517-1550, October.
    15. Leonardo Fabio Morales & Leonardo Bonilla‐Mejía & Jose Pulido & Luz A. Flórez & Didier Hermida & Karen L. Pulido‐Mahecha & Francisco Lasso‐Valderrama, 2022. "Effects of the COVID‐19 pandemic on the Colombian labour market: Disentangling the effect of sector‐specific mobility restrictions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 308-357, February.
    16. Rahul Deb & Mallesh Pai & Akhil Vohra & Rakesh Vohra, 2022. "Testing alone is insufficient," Review of Economic Design, Springer;Society for Economic Design, vol. 26(1), pages 1-21, March.
    17. Pestel, Nico & Bonin, Holger & Isphording, Ingo E. & Gregory, Terry & Caliendo, Marco, 2020. "Auswirkungen des gesetzlichen Mindestlohns auf Beschäftigung und Arbeitslosigkeit," IZA Research Reports 95, Institute of Labor Economics (IZA).
    18. Dami'an Vergara, 2022. "Minimum Wages and Optimal Redistribution," Papers 2202.00839, arXiv.org, revised Dec 2022.
    19. Garriga, Carlos & Manuelli, Rody & Sanghi, Siddhartha, 2022. "Optimal management of an epidemic: Lockdown, vaccine and value of life," Journal of Economic Dynamics and Control, Elsevier, vol. 140(C).
    20. Goda, Gopi Shah & Jackson, Emilie & Nicholas, Lauren Hersch & Stith, Sarah See, 2023. "Older workers’ employment and Social Security spillovers through the second year of the COVID-19 pandemic," Journal of Pension Economics and Finance, Cambridge University Press, vol. 22(4), pages 524-549, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9675-:d:881473. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.