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Worker adjustment to unexpected occupational risk: Evidence from COVID-19

Author

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  • Braakmann, Nils
  • Eberth, Barbara
  • Wildman, John

Abstract

We study the link between the revelation of a hitherto non-existent occupational risk – mortality due to the COVID-19 pandemic in 2020 – and subsequent worker behaviour. We link occupation-specific data on COVID-19 mortality to individual level data sets. We find that wages did not adjust, but workers started leaving high-risk occupations during 2020. These effects are stronger for workers not affected by lockdowns or working from home orders and for those considered to be clinically vulnerable to COVID-19 and are not driven by negative health shocks or employer-initiated separations. Occupation-level results suggest that employment began to rebound in 2021.

Suggested Citation

  • Braakmann, Nils & Eberth, Barbara & Wildman, John, 2022. "Worker adjustment to unexpected occupational risk: Evidence from COVID-19," European Economic Review, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:eecrev:v:150:y:2022:i:c:s0014292122002057
    DOI: 10.1016/j.euroecorev.2022.104325
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    Cited by:

    1. Michaela Benzeval & Thomas F. Crossley & Edith Aguirre, 2023. "A symposium on Understanding Society, the UK Household Longitudinal Study: introduction," Fiscal Studies, John Wiley & Sons, vol. 44(4), pages 317-340, December.
    2. Braakmann, Nils & Hirsch, Boris, 2023. "Unions as Insurance: Employer–Worker Risk Sharing and Workers' Outcomes during COVID-19," IZA Discussion Papers 15893, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Compensating differential; Mortality risk; COVID-19;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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