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Labor Dynamics and Actual Telework Use during Covid-19: Skills, Occupations and Industries

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Listed:
  • Jean-Benoit Eyméoud
  • Nicolas Petrosky-Nadeau
  • Raül Santaeulàlia-Llopis
  • Etienne Wasmer

Abstract

We document the dynamics of labor-changes in employment and hours worked -and of actual telework use during the pandemic. We find that employment losses are unrelated to telework use starting in 2020-Q4. This is in stark contrast with the onset of the pandemic that disproportionately affected skills, occupations and industries with low telework use. Our findings are the results of two phenomena. First, labor is dynamically heterogeneous: employment of skill and occupation groups that are most affected by the initial Covid-19 shock recover quickly, catching up with the rest of the economy by October 2020. Second, the use of telework has homogeneously declined within skills, occupations and industries -by 40 percent on average- leaving the relative ranking of telework use across groups unaltered. Finally, there is substantial and persistent cross-industry heterogeneity in labor market outcomes one year into the pandemic that is unrelated to the use of telework.

Suggested Citation

  • Jean-Benoit Eyméoud & Nicolas Petrosky-Nadeau & Raül Santaeulàlia-Llopis & Etienne Wasmer, 2021. "Labor Dynamics and Actual Telework Use during Covid-19: Skills, Occupations and Industries," Working Papers 1234, Barcelona School of Economics.
  • Handle: RePEc:bge:wpaper:1234
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    References listed on IDEAS

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    1. Dingel, Jonathan I. & Neiman, Brent, 2020. "How many jobs can be done at home?," Journal of Public Economics, Elsevier, vol. 189(C).
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    3. Anna Houstecka & Dongya Koh & Raül Santaeulàlia-Llopis, 2020. "Contagion at Work," Working Papers 1225, Barcelona School of Economics.
    4. Simon Mongey & Laura Pilossoph & Alexander Weinberg, 2021. "Which workers bear the burden of social distancing?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 509-526, September.
    5. Tomaz Cajner & Leland D. Crane & Ryan A. Decker & John Grigsby & Adrian Hamins-Puertolas & Erik Hurst & Christopher Johann Kurz & Ahu Yildirmaz, 2020. "The U.S. Labor Market During the Beginning of the Pandemic Recession," Working Papers 2020-58_Revision, Becker Friedman Institute for Research In Economics.
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    Cited by:

    1. Raül Santaeulàlia-Llopis, 2021. "Economic Activity and Public Health Policy: A Note," Working Papers 1284, Barcelona School of Economics.
    2. Cristina Lafuente & Raül Santaeulàlia-Llopis & Ludo Visschers, 2022. "Temping fates in Spain: hours and employment in a dual labor market during the Great Recession and COVID-19," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(1), pages 101-145, May.

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    More about this item

    Keywords

    labor; dynamics; telework; skills; Occupations; industries; COVID-19;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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