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Containment measures, employment and the spread of COVID-19 in Spanish municipalities

Author

Listed:
  • Eduardo Gutiérrez

    (Banco de España)

  • Enrique Moral-Benito

    (Banco de España)

Abstract

In order to curb the advance of COVID-19, Royal Decree-Law 10/2020 of 29 March 2020 stipulated the temporary shutdown of all activities considered non-essential between 30 March and 9 April 2020. This paper uses municipal-level information to quantify the short-term effects of this measure both on employment and on containing the pandemic. Specifically, we analyse the relationship between the share of firms forced to shut down in each municipality and changes in Social Security registrations along with new COVID-19 cases in April. The results suggest that those municipalities most affected by the non-essential activity shutdown endured higher reductions in employment but, at the same time, they also witnessed a lower propagation of the pandemic during April. Finally, other characteristics such as ageing, colder temperatures, higher population density and proximity to the provincial capital are found to be associated with a higher incidence of COVID-19 at the municipality level.

Suggested Citation

  • Eduardo Gutiérrez & Enrique Moral-Benito, 2020. "Containment measures, employment and the spread of COVID-19 in Spanish municipalities," Occasional Papers 2022, Banco de España.
  • Handle: RePEc:bde:opaper:2022e
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    File URL: https://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosOcasionales/20/Files/do2022e.pdf
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    File URL: https://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosOcasionales/20/Fich/do2022.pdf
    File Function: Spanish version
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    More about this item

    Keywords

    COVID-19; pandemic; employment; Spanish municipalities;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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