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Local Variations in the Labour Market Impact of COVID-19

Author

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  • Richard Dorsett
  • Jessica Hug

Abstract

This paper provides new evidence on the disruption brought by the coronavirus (COVID-19) pandemic to local labour markets in the U.K.. After presenting key trends on local labour markets, a matching function is estimated using monthly data on vacancies and unemployment. This matching function is specified to capture local variations in efficiency. These estimates of labour market efficiency are then included in an individual-level regression of year-on-year transitions between employment, unemployment and inactivity. The results show that, for males, living in an area with a more efficient labour market pre-COVID was associated with a reduced likelihood of being unemployed in 2021 but that for females there was no such association.

Suggested Citation

  • Richard Dorsett & Jessica Hug, 2022. "Local Variations in the Labour Market Impact of COVID-19," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2022-18, Economic Statistics Centre of Excellence (ESCoE).
    • Handle: RePEc:nsr:escoed:escoe-dp-2022-18
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    References listed on IDEAS

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    1. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    2. Patacchini, Eleonora & Zenou, Yves, 2005. "Spatial mismatch, transport mode and search decisions in England," Journal of Urban Economics, Elsevier, vol. 58(1), pages 62-90, July.
    3. Wall, Howard J & Zoega, Gylfi, 2002. "The British Beveridge Curve: A Tale of Ten Regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(3), pages 261-280, July.
    4. Jeroen Bastiaanssen & Daniel Johnson & Karen Lucas, 2022. "Does better job accessibility help people gain employment? The role of public transport in Great Britain," Urban Studies, Urban Studies Journal Limited, vol. 59(2), pages 301-322, February.
    5. Strange, William & Hejazi, Walid & Tang, Jianmin, 2006. "The uncertain city: Competitive instability, skills, innovation and the strategy of agglomeration," Journal of Urban Economics, Elsevier, vol. 59(3), pages 331-351, May.
    6. Howard J. Wall & Gylfi Zoega, 2002. "The British Beveridge curve: A tale of ten regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(3), pages 257-276, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    efficiency; labour market transitions; matching function;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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