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The COVID-19 vaccine rollout and labor market recovery in the U.S: a note

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  • Kolawole Ogundari

    (Education Research and Data Center, Office of Financial Management)

Abstract

The study examines the relationship between COVID-19 vaccine rollout and labor market recovery in the United States. We employed the U.S. Current Population Survey (CPS), covering February 2020–October 2021. With December 2020–October 2021 taken as the vaccine rollout period and February–November 2020 as the pre-vaccine period, we regress this on the number of working hours per week while controlling for other potential confounding factors using the ordinary least square (OLS) regression model. The empirical results show that working hours are significantly higher, since vaccines rolled out than in the pre-vaccine period, which probably reflects increased confidence in immunized individuals and vaccination optimism in the U.S. At the same time, we find that working hours are significantly higher, since vaccines rollout than in the pre-vaccine period among white respondents, while it decreases among black respondents. The regional insights also show that working hours increase during vaccine rollout in the Midwest and South, while we find no evidence in the Northeast and West. From the overall economic standpoint, this finding indicates an accelerating pace of labor market recovery in the United States.

Suggested Citation

  • Kolawole Ogundari, 2022. "The COVID-19 vaccine rollout and labor market recovery in the U.S: a note," SN Business & Economics, Springer, vol. 2(7), pages 1-13, July.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:7:d:10.1007_s43546-022-00258-7
    DOI: 10.1007/s43546-022-00258-7
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    References listed on IDEAS

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    1. Edouard Mathieu & Hannah Ritchie & Esteban Ortiz-Ospina & Max Roser & Joe Hasell & Cameron Appel & Charlie Giattino & Lucas Rodés-Guirao, 2021. "A global database of COVID-19 vaccinations," Nature Human Behaviour, Nature, vol. 5(7), pages 947-953, July.
    2. Ashley Sexton & Maria D. Tito, 2021. "The Vaccine Boost: An Analysis of the Impact of the COVID-19 Vaccine Rollout on Measures of Activity," FEDS Notes 2021-06-01, Board of Governors of the Federal Reserve System (U.S.).
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    Keywords

    Vaccine; COVID-19; Labor market; USA;
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