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Health Risks and Labour Supply

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  • Joseph Richardson

Abstract

In this paper, we explore the relationship between health risks from COVID-19 and UK labour supply. Using pre-existing conditions as the source of variation in COVID-19 health risks, we show that employment fell by 2 to 3 percentage points with each prior additional condition, after controlling for pre-pandemic labour supply and other relevant factors. These effects begin in April 2020 and persist through to September 2021, long after the pandemic’s peak. Furthermore, these effects were concentrated in jobs difficult to perform remotely, are not driven by labour demand shocks, and similar relationships did not exist prior to the pandemic.

Suggested Citation

  • Joseph Richardson, 2023. "Health Risks and Labour Supply," Working Papers 379420583, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:379420583
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2023_003.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    COVID-19; Labour supply; Health risks; Pre-existing conditions; Job separations;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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