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Drivers of Working Hours and Household Income Dynamics during the COVID-19 Pandemic: The Case of the Netherlands

Author

Listed:
  • Zimpelmann, Christian

    (IZA)

  • Gaudecker, Hans-Martin von

    (University of Bonn)

  • Holler, Radost

    (Bonn Graduate School of Economics)

  • Janys, Lena

    (Newcastle University)

  • Siflinger, Bettina M.

    (Tilburg University)

Abstract

Using customized panel data spanning the entire year of 2020, we analyze the dynamics of working hours and household income across different stages of the CoVid-19 pandemic. Similar to many other countries, during this period the Netherlands experienced a quick spread of the SARS-CoV-2 virus, adopted a set of fairly strict social distancing measures, gradually reopened, and imposed another lockdown to contain the second wave. We show that socio-economic status is strongly related to changes in working hours, especially when strict economic restrictions are in place. In contrast, household income is equally unaffected for all socio-economic groups. Examining the drivers of these observations, we find that pandemic-specific job characteristics (the ability to work from home and essential worker status) explain most of the socio-economic gradient in total working hours. Furthermore, household income is largely decoupled from shocks to working hours for employees. We provide suggestive evidence that large-scale labor hoarding schemes have helped insure employees against demand shocks to their employees.

Suggested Citation

  • Zimpelmann, Christian & Gaudecker, Hans-Martin von & Holler, Radost & Janys, Lena & Siflinger, Bettina M., 2021. "Drivers of Working Hours and Household Income Dynamics during the COVID-19 Pandemic: The Case of the Netherlands," IZA Discussion Papers 14382, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14382
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    References listed on IDEAS

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    Cited by:

    1. MORIKAWA Masayuki, 2022. "Productivity Dynamics of Work from Home since the Onset of the COVID-19 Pandemic: Evidence from a panel of firm surveys," Discussion papers 22061, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    inequality; labor market; working from home; coronavirus; mitigation policies; essential workers; COVID-19;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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