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Task Content and Job Losses in the Great Lockdown

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  • Filippos Petroulakis

Abstract

The author examines the short-term labor market effects of the COVID-19 pandemic (aka the Great Lockdown recession) in the United States. Findings show that the task content is an important predictor of job losses; jobs with a high non-routine cognitive content are especially well-protected, even if they are not teleworkable. Teleworkability matters more for low-paying jobs. The importance of task content, particularly for non-routine cognitive tasks, is strong even after controlling for demographics and for differential sector and location shocks, while effects persist in the medium run. Jobs subject to higher structural turnover rates were much more likely to be terminated, suggesting that easier-to-replace employees were at a particular disadvantage, even within sectors. At the same time, labor hoarding may occur for more valuable matches. Individuals in low-skilled jobs fared comparatively better in industries with a high share of high-skilled workers, suggesting complementarities across skill types.

Suggested Citation

  • Filippos Petroulakis, 2023. "Task Content and Job Losses in the Great Lockdown," ILR Review, Cornell University, ILR School, vol. 76(3), pages 586-613, May.
    • Handle: RePEc:sae:ilrrev:v:76:y:2023:i:3:p:586-613
    DOI: 10.1177/00197939231161616
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    Cited by:

    1. Beyer, Robert C.M. & Jain, Tarun & Sinha, Sonalika, 2023. "Lights out? COVID-19 containment policies and economic activity," Journal of Asian Economics, Elsevier, vol. 85(C).
    2. Consolo, Agostino & Petroulakis, Filippos, 2022. "Did COVID-19 induce a reallocation wave?," Working Paper Series 2703, European Central Bank.
    3. Masayuki Morikawa, 2024. "Productivity dynamics of work from home: Firm-level evidence from Japan," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 465-487, April.
    4. Palacios-Lopez,Amparo & Newhouse,David Locke & Pape,Utz Johann & Khamis,Melanie & Weber,Michael & Prinz,Daniel, 2021. "The Early Labor Market Impacts of COVID-19 in Developing Countries : Evidence from High-Frequency Phone Surveys," Policy Research Working Paper Series 9510, The World Bank.

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    More about this item

    Keywords

    COVID-19; recessions; task framework; human resource management practices; unemployment;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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