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Drivers of Working Hours and Household Income Dynamics during the COVID-19 Pandemic: The Case of the Netherlands

Author

Listed:
  • Christian Zimpelmann
  • Hans-Martin von Gaudecker
  • Radost Holler
  • Lena Janys
  • Bettina Siflinger

    (Department of Economics, University of Bonn, Adenauerallee 24-42, 53113 Bonn, Germany)

Abstract

Using customized panel data spanning the entire year of 2020, we analyze the dynamics of working hours and household income across different stages of the CoVid-19 pandemic. Similar to many other countries, during this period the Netherlands experienced a quick spread of the SARS-CoV-2 virus, adopted a set of fairly strict social distancing measures, gradually reopened, and imposed another lockdown to contain the second wave. We show that socio-economic status is strongly related to changes in working hours, especially when strict economic restrictions are in place. In contrast, household income is equally unaffected for all socio-economic groups. Examining the drivers of these observations, we find that pandemic-specific job characteristics (the ability to work from home and essential worker status) explain most of the socio-economic gradient in total working hours. Furthermore, household income is largely decoupled from shocks to working hours for employees. We provide suggestive evidence that large-scale labor hoarding schemes have helped insure employees against demand shocks to their employees.

Suggested Citation

  • Christian Zimpelmann & Hans-Martin von Gaudecker & Radost Holler & Lena Janys & Bettina Siflinger, 2021. "Drivers of Working Hours and Household Income Dynamics during the COVID-19 Pandemic: The Case of the Netherlands," ECONtribute Discussion Papers Series 093, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:093
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    References listed on IDEAS

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    1. Coibion, Olivier & Gorodnichenko, Yuriy & Weber, Michael, 2020. "Labor Markets During the Covid-19 Crisis: A Preliminary View," Department of Economics, Working Paper Series qt7rx7t91p, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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    Cited by:

    1. MORIKAWA Masayuki, 2022. "Productivity Dynamics of Work from Home since the Onset of the COVID-19 Pandemic: Evidence from a panel of firm surveys," Discussion papers 22061, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    inequality; labor market; working from home; coronavirus; essential workers; mitigation policies;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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