IDEAS home Printed from https://ideas.repec.org/a/url/izvest/v24y2023i4p64-81.html
   My bibliography  Save this article

Labour market flexibility as a factor in economic recovery after the COVID-19 pandemic

Author

Listed:
  • Maria Ye. Konovalova

    (Samara State University of Economics, Samara, Russia)

  • Oksana V. Plyusnina

    (Ukhta State Technical University, Ukhta, the Komi Republic, Russia)

  • Elena V. Fedotova

    (Kaluga branch of the Russian State Agrarian University – Moscow Timiryazev Agricultural Academy, Kaluga, Russia)

Abstract

The COVID-19 pandemic has largely undermined most economies in the world. To a significant extent the reasons behind this economic nosedive are rooted in the sphere of labour market. The imposed restriction measures made many workers stay at home, and part of them even lost their jobs. The speed of economic recovery in different countries varied depending on how quarantine restrictions were eased. One crucial factor in this process is labour market flexibility and its ability to adapt to changing economic conditions. The purpose of the paper is to explore the relationship between the labour market flexibility and the speed of GDP recovery when the pandemic was waning and the quarantine restrictions were being removed. Methodologically, the study relies on labour economics. The methods are multivariate and logistic regression analysis. The data for the study is sourced from the World Bank and Eurostat and comprises statistics for assessing labour market flexibility and GDP in various countries for 2020–2021. The findings indicate a reverse relationship between the speed of GDP growth recovery during the post-COVID period and the share of part-time employment. Yet taking into account that part-time employment is not only an indicator of the labour market flexibility, but also reflects a general slowdown in production and unemployment, we can attach low speed of recovery to a greater weakness of an economy. The obtained results are insufficient to reject the hypothesis that a more flexible labour market accelerates the recovery of a national economy. At the same time, the study demonstrates that the West European countries generally got over the consequences of the COVID-19 crisis faster than other EU countries. The research contributes to understanding the transformation processes in the labour market under the pandemic as well as provides support for labour market policy development and implementation.

Suggested Citation

  • Maria Ye. Konovalova & Oksana V. Plyusnina & Elena V. Fedotova, 2023. "Labour market flexibility as a factor in economic recovery after the COVID-19 pandemic," Journal of New Economy, Ural State University of Economics, vol. 24(4), pages 64-81, January.
    • Handle: RePEc:url:izvest:v:24:y:2023:i:4:p:64-81
    DOI: 10.29141/2658-5081-2023-24-4-4
    as

    Download full text from publisher

    File URL: https://jne.usue.ru/images/download/101/4.pdf
    Download Restriction: no
    File URL: https://jne.usue.ru/en/issues-2023/1389
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2658-5081-2023-24-4-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kässi, Otto & Lehdonvirta, Vili, 2018. "Online labour index: Measuring the online gig economy for policy and research," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 241-248.
    2. Simon DEAKIN & Jonas MALMBERG & Prabirjit SARKAR, 2014. "How do labour laws affect unemployment and the labour share of national income? The experience of six OECD countries, 1970–2010," International Labour Review, International Labour Organization, vol. 153(1), pages 1-27, March.
    3. Daniyar T. Baitenizov & Igor N. Dubina & David F. J. Campbell & Elias G. Carayannis & Tolkyn A. Azatbek, 2019. "Freelance as a Creative Mode of Self-employment in a New Economy (a Literature Review)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 1-17, March.
    4. Miriam A. CHERRY, 2020. "Back to the future: A continuity of dialogue on work and technology at the ILO," International Labour Review, International Labour Organization, vol. 159(1), pages 1-23, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrey SHEVCHUK & Denis STREBKOV, 2023. "Digital platforms and the changing freelance workforce in the Russian Federation: A ten‐year perspective," International Labour Review, International Labour Organization, vol. 162(1), pages 1-22, March.
    2. Kyoji Fukao & Cristiano Perugini, 2021. "The Long‐Run Dynamics of the Labor Share in Japan," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(2), pages 445-480, June.
    3. Jacob, Tinu Iype & Paul, Sunil, 2024. "Labour income share, market power and automation: Evidence from an emerging economy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 37-45.
    4. Christine Mayrhuber & Julia Bock-Schappelwein, 2018. "Dimensionen plattformbasierter Arbeit in Österreich und Europa. Implikationen für die soziale Sicherheit," WIFO Studies, WIFO, number 61667, April.
    5. Simon Deakin & Shelley Marshall & Sanjay Pinto, 2020. "Labour Laws, Informality, and Development: Comparing India and China," Working Papers wp518, Centre for Business Research, University of Cambridge.
    6. Yao, Qiongrui (Missy) & Baker, LaKami T. & Lohrke, Franz T., 2022. "Building and sustaining trust in remote work by platform-dependent entrepreneurs on digital labor platforms: Toward an integrative framework," Journal of Business Research, Elsevier, vol. 149(C), pages 327-339.
    7. Julia Bock-Schappelwein & Agnes Kügler & Nicole Schmidt-Padickakudy, 2023. "Digitalisation in Austria: Progress and Significance of Digital Platform Work," WIFO Reports on Austria, WIFO, issue 11, July.
    8. Stephany, Fabian, 2021. "When Does it Pay Off to Learn a New Skill? Revealing the Complementary Benefit of Cross-Skilling," SocArXiv sv9de, Center for Open Science.
    9. Zoe Adams & Simon Deakin, 2014. "Institutional Solutions to Precariousness and Inequality in Labour Markets," British Journal of Industrial Relations, London School of Economics, vol. 52(4), pages 779-809, December.
    10. Walter Paternesi Meloni & Antonella Stirati, 2021. "What has driven the delinking of wages from productivity? A political economy-based investigation for high-income economies," Working Papers PKWP2104, Post Keynesian Economics Society (PKES).
    11. Fabian Stephany & Michael Dunn & Steven Sawyer & Vili Lehdonvirta, 2020. "Distancing Bonus Or Downscaling Loss? The Changing Livelihood of Us Online Workers in Times of COVID‐19," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(3), pages 561-573, July.
    12. Kässi, Otto & Lehdonvirta, Vili & Stephany, Fabian, 2021. "How Many Online Workers are there in the World? A Data-Driven Assessment," SocArXiv 78nge, Center for Open Science.
    13. Kässi, Otto, 2022. "The Labor-market Effects of Service Offshoring: A Synthetic Control Approach with High-dimensional Microdata," ETLA Working Papers 97, The Research Institute of the Finnish Economy.
    14. Braesemann, Fabian & Stephany, Fabian & Teutloff, Ole & Kässi, Otto & Graham, Mark & Lehdonvirta, Vili, 2021. "The polarisation of remote work," SocArXiv q8a96, Center for Open Science.
    15. K. V. Yankov, 2021. "Approaches to Measuring and Forecasting Remote Employment," Studies on Russian Economic Development, Springer, vol. 32(4), pages 399-406, July.
    16. Wood, Alex & Lehdonvirta, Vili, 2021. "Antagonism beyond employment: how the ‘subordinated agency’ of labour platforms generates conflict in the remote gig economy," SocArXiv y943w, Center for Open Science.
    17. Arfive Gandhi & Yudho Giri Sucahyo, 2021. "Architecting an Advanced Maturity Model for Business Processes in the Gig Economy: A Platform-Based Project Standardization," Economies, MDPI, vol. 9(4), pages 1-21, November.
    18. Butschek, Sebastian & González Amor, Roberto & Kampkötter, Patrick & Sliwka, Dirk, 2022. "Motivating gig workers – evidence from a field experiment," Labour Economics, Elsevier, vol. 75(C).
    19. Newlands, Gemma & Lutz, Christoph, 2024. "Mapping the prestige and social value of occupations in the digital economy," Journal of Business Research, Elsevier, vol. 180(C).
    20. Waqas Shair, 2020. "Is Optimizing Or Non-Optimizing Objective Of A Firm In The Gig Economy? A Chronological Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(2), pages 101-105, June.

    More about this item

    Keywords

    labour market; labour market flexibility; part-time employment; GDP; pandemic; the European Union;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:url:izvest:v:24:y:2023:i:4:p:64-81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.