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Scarring Effects of the COVID-19 Pandemic on the Italian Labour Market

Author

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  • Fiaschi, Davide

    (University of Pisa)

  • Tealdi, Cristina

    (Heriot-Watt University, Edinburgh)

Abstract

The COVID-19 pandemic raised the share of inactive individuals in 2020 in Italy, mostly at the expense of permanent and fix-term employment. We document sizable asymmetric effects across categories of individuals, defined on the basis of gender, age and geographical area. In particular, the pandemic disproportionately affected females and, among those, more severely the ones living in large households in the North and Center of Italy. These findings find a rationale both in the presence of young children, which imposes strong constraints to the female labour force participation, and in the worse labour market opportunities in the South, which lead to a strong self-selection of women in the labour market. Despite the short period of observation after the burst of COVID-19 pandemic (four quarters of 2020), the identified effects appear large and persistent, rising awareness about the likely long-lasting scarring effects of the COVID-19 pandemic on the labour market choices and opportunities of Italian women.

Suggested Citation

  • Fiaschi, Davide & Tealdi, Cristina, 2022. "Scarring Effects of the COVID-19 Pandemic on the Italian Labour Market," IZA Discussion Papers 15102, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15102
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    Cited by:

    1. Henri Bussink & Tobias Vervliet & Bas Weel, 2022. "The Short-Term Effect of the COVID-19 Crisis on Employment Probabilities of Labour-Market Entrants in the Netherlands," De Economist, Springer, vol. 170(2), pages 279-303, May.
    2. Bussink, Henri & Vervliet, Tobias & ter Weel, Bas, 2022. "The Short-Term Effect of the COVID-19 Crisis on Employment Probabilities of Labour-Market Entrants in the Netherlands," IZA Discussion Papers 15242, Institute of Labor Economics (IZA).
    3. Henri Bussink & Tobias Vervliet & Bas ter Weel, 2022. "The short-term effect of the COVID-19 crisis on employment probabilities of labour-market entrants in the Netherlands," Tinbergen Institute Discussion Papers 22-030/V, Tinbergen Institute.
    4. Lafuente, Cristina & Ruland, Astrid & Santaeulàlia-Llopis, Raül & Visschers, Ludo, 2023. "The effects of Covid-19 on couples’ job tenures: Mothers have it worse," Labour Economics, Elsevier, vol. 83(C).

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    More about this item

    Keywords

    labour market flows; transition probabilities; labour market shares; female inactivity rate;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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