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The impacts of Covid-19 absences on workers

Author

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  • Goda, Gopi Shah
  • Soltas, Evan J.

Abstract

We show that Covid-19 illnesses and related work absences persistently reduce labor supply. Using an event study, we estimate that workers with week-long Covid-19 absences are 7 percentage points less likely to be in the labor force one year later compared to otherwise-similar workers who do not miss a week of work for health reasons. Our estimates suggest Covid-19 absences have reduced the U.S.labor force by approximately 500,000 people (0.2 percent of adults) and imply an average labor supply loss per Covid-19 absence equivalent to $9,000 in forgone earnings, about 90 percent of which reflects losses beyond the initial absence week.

Suggested Citation

  • Goda, Gopi Shah & Soltas, Evan J., 2023. "The impacts of Covid-19 absences on workers," Journal of Public Economics, Elsevier, vol. 222(C).
    • Handle: RePEc:eee:pubeco:v:222:y:2023:i:c:s0047272723000713
    DOI: 10.1016/j.jpubeco.2023.104889
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