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Disparities in Labour Market and Income Trends during the First Year of the COVID-19 Crisis – Evidence from Germany

Author

Listed:
  • Braband, Carsten

    (Humboldt University Berlin)

  • Consiglio, Valentina Sara

    (University of Konstanz)

  • Grabka, Markus M.

    (DIW Berlin)

  • Hainbach, Natascha

    (Bertelsmann Stiftung)

  • Königs, Sebastian

    (OECD)

Abstract

This paper studies inequalities in labour market outcomes, incomes and economic concerns across workers in Germany during the first year of the COVID-19 crisis using SOEP-CoV data. It shows that, overall, the self-employed and disadvantaged groups of workers were more severely affected by the crisis, including part-time workers and workers in marginal employment (Minijobs), low-educated and low-income workers, and to some extent women. Short-time work (Kurzarbeit), one of the central pillars of Germany's policy response to the crisis, prevented a further widening of labour market inequalities. In spite of the widespread use of Kurzarbeit, about one-in-five low-income workers who had been employed in 2019 were out of work in January/February 2021. This reflects that a higher share of low-income workers had been on part-time contracts and in Minijobs, and had lower capacity to work from home.

Suggested Citation

  • Braband, Carsten & Consiglio, Valentina Sara & Grabka, Markus M. & Hainbach, Natascha & Königs, Sebastian, 2022. "Disparities in Labour Market and Income Trends during the First Year of the COVID-19 Crisis – Evidence from Germany," IZA Discussion Papers 15475, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15475
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    References listed on IDEAS

    as
    1. Andrew E. Clark & Conchita D’Ambrosio & Anthony Lepinteur, 2021. "The fall in income inequality during COVID-19 in four European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 489-507, September.
    2. Kunze, Florian & Hampel, Kilian & Zimmermann, Sophia, 2020. "Homeoffice in der Corona-Krise – eine nachhaltige Transformation der Arbeitswelt? [Working from home in the Coronavirus crisis: Towards a transformation of work environments?]," Policy Papers 02 (DE), University of Konstanz, Cluster of Excellence "The Politics of Inequality. Perceptions, Participation and Policies".
    3. Andrew E. Clark & Conchita D'Ambrosio & Anthony Lepinteur, 2020. "The Fall in Income Inequality during COVID-19 in Five European Countries," Working Papers 565, ECINEQ, Society for the Study of Economic Inequality.
    4. Maximilian Joseph Blömer & Przemyslaw Brandt & Andreas Peichl, 2021. "Getting out of the Second Earner Trap: Reform Proposals to Reduce Misaligned Incentives in the German Tax and Social Security System," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 126.
    5. Schulze Buschoff, Karin & Baumann, Helge, 2021. "Selbstständige in der Corona-Krise: Ergebnisse aus der HBS-Erwerbspersonenbefragung, Wellen 1 bis 5," WSI Policy Briefs 60, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    6. Markus M. Grabka, 2021. "Income Inequality in Germany Stagnating over the Long Term, But Decreasing Slightly during the Coronavirus Pandemic," DIW Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 11(17/18), pages 125-133.
    7. Jörg Dittmann, 2009. "Unsicherheit in Zeiten gesellschaftlicher Transformation: zur Entwicklung und Dynamik von Sorgen in der Bevölkerung in Deutschland," SOEPpapers on Multidisciplinary Panel Data Research 243, DIW Berlin, The German Socio-Economic Panel (SOEP).
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    More about this item

    Keywords

    SOEP-CoV; COVID-19; Corona; labour market; concerns;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • D39 - Microeconomics - - Distribution - - - Other
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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