IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/p2qvh.html
   My bibliography  Save this paper

Got used to make less: the lasting earnings losses of COVID-19 short-time work

Author

Listed:
  • Vogtenhuber, Stefan
  • Steiber, Nadia
  • Mühlböck, Monika

Abstract

This study is the first to investigate the impact of short-time work (STW) schemes on earnings during the COVID-19 pandemic. STW schemes have been implemented to preserve employee-employer matches, support workers' incomes and uphold consumption. By construction, affected workers suffer temporary earnings losses, yet an important question is whether negative earnings effects of STW persist beyond the STW period or are limited to the STW spell. Using a dynamic difference-in-difference (DiD) identification strategy on administrative data, this study aims to identify any lasting causal STW effects on earnings, accounting for the factors that influence the selection of workers into STW and testing for heterogeneous effects across subgroups of workers. We find lasting earnings losses that persist beyond the actual STW participation. First and foremost, these earnings losses depend on the duration of STW exposure, with greater negative effects especially in the case of long-term or recurring STW spells. In general, lasting earnings losses post STW tend to be more pronounced in white-collar jobs, where women incur larger losses than men. The largest losses, however, are observed among men in blue-collar jobs with long STW spells of more than one year.

Suggested Citation

  • Vogtenhuber, Stefan & Steiber, Nadia & Mühlböck, Monika, 2023. "Got used to make less: the lasting earnings losses of COVID-19 short-time work," SocArXiv p2qvh, Center for Open Science.
  • Handle: RePEc:osf:socarx:p2qvh
    DOI: 10.31219/osf.io/p2qvh
    as

    Download full text from publisher

    File URL: https://osf.io/download/64c297e2796c490116304a79/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/p2qvh?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. Thomas Bauer & Klaus F. Zimmermann, 1999. "Overtime Work and Overtime Compensation in Germany," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(4), pages 419-436, September.
    2. Lisa Hanzl & Miriam Rehm, 2023. "Less Work, More Labor: School Closures and Work Hours During the COVID-19 Pandemic in Austria," Feminist Economics, Taylor & Francis Journals, vol. 29(4), pages 252-284, October.
    3. Brian Bell & Nicholas Bloom & Jack Blundell, 2021. "This time is not so different: income dynamics during the Covid-19 recession," CEP Discussion Papers dp1792, Centre for Economic Performance, LSE.
    4. Irlacher Michael & Koch Michael, 2021. "Working from Home, Wages, and Regional Inequality in the Light of COVID-19," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 241(3), pages 373-404, June.
    5. International Monetary Fund, 2021. "Austria: Selected Issues," IMF Staff Country Reports 2021/204, International Monetary Fund.
    6. Vanda Almeida & Salvador Barrios & Michael Christl & Silvia Poli & Alberto Tumino & Wouter Wielen, 2021. "The impact of COVID-19 on households´ income in the EU," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 413-431, September.
    7. Jonathan Cribb & Monica Costa Dias & Richard Blundell & Robert Joyce & Thomas Wernham & Tom Waters & Xiaowei Xu, 2022. "Inequality and the COVID-19 Crisis in the United Kingdom," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 607-636, August.
    8. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2012. "Causal Inference without Balance Checking: Coarsened Exact Matching," Political Analysis, Cambridge University Press, vol. 20(1), pages 1-24, January.
    9. Friedrich Fritzer & Doris Prammer & Mirjam Salish & Martin Schneider & Richard Sellner, 2022. "Strong economic rebound amid high uncertainty about impact of Omicron variant. Economic outlook for Austria from 2021 to 2024 (December 2021)," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/21.
    10. Fredrik W. Andersson & Susanne Gullberg Brännstrom & Roger Mörtvik, 2018. "Long-term scarring effect of neither working nor studying," International Journal of Manpower, Emerald Group Publishing Limited, vol. 39(2), pages 190-204, May.
    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. Zhong, Mingli & Braga, Breno & McKernan, Signe-Mary & Hayward, Mark & Millward, Elizabeth & Trepel, Christopher, 2024. "Impacts of COVID-19-era economic policies on consumer debt in the United Kingdom," Journal of Economics and Business, Elsevier, vol. 129(C).
    2. Juan-Francisco Albert & Nerea Gómez-Fernández, 2024. "Estatus social y consecuencias sanitarias y socioeconómicas del coronavirus," Hacienda Pública Española / Review of Public Economics, IEF, vol. 249(2), pages 35-63, June.
    3. Stefanie Stantcheva, 2022. "Inequalities in the times of a pandemic," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(109), pages 5-41.
    4. Lonnie Golden & Stuart Glosser, 2013. "Work sharing as a potential policy tool for creating more and better employment: A review of the evidence," Chapters, in: Jon C. Messenger & Naj Ghosheh (ed.), Work Sharing during the Great Recession, chapter 7, pages 203-258, Edward Elgar Publishing.
    5. François Fall & Akim Almouksit, 2016. "The impact of formal financing on small informal enterprises in Comoros," Working Papers hal-01566389, HAL.
    6. Stefano Colonnello & Mariela Dal Borgo, 2024. "Raising Household Leverage: Evidence from Co-Financed Mortgages," Working Papers 2024: 01, Department of Economics, University of Venice "Ca' Foscari".
    7. Sergio Afcha & Jose García-Quevedo, 2016. "The impact of R&D subsidies on R&D employment composition," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(6), pages 955-975.
    8. Chen Yu-Fu & Funke Michael, 2004. "Working Time and Employment Under Uncertainty," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 8(3), pages 1-23, September.
    9. Benjamin Bennett & Isil Erel & Léa H. Stern & Zexi Wang, 2020. "Paid Leave Pays Off: The Effects of Paid Family Leave on Firm Performance," NBER Working Papers 27788, National Bureau of Economic Research, Inc.
    10. Jing Wang & Gen Li & Kai-Lung Hui, 2022. "Monetary Incentives and Knowledge Spillover: Evidence from a Natural Experiment," Management Science, INFORMS, vol. 68(5), pages 3549-3572, May.
    11. Katie Meara & Francesco Pastore & Allan Webster, 2020. "The gender pay gap in the USA: a matching study," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 271-305, January.
    12. Christophe Loussouarn & Carine Franc & Yann Videau & Julien Mousquès, 2021. "Can General Practitioners Be More Productive? The Impact of Teamwork and Cooperation with Nurses on GP Activities," Health Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 680-698, March.
    13. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    14. Guignet, Dennis & Jenkins, Robin R. & Belke, James & Mason, Henry, 2023. "The property value impacts of industrial chemical accidents," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    15. Jian Jiu Chen & Sai Yin Ho & Wing Man Au & Man Ping Wang & Tai Hing Lam, 2015. "Family Smoking, Exposure to Secondhand Smoke at Home and Family Unhappiness in Children," IJERPH, MDPI, vol. 12(11), pages 1-14, November.
    16. Philipp vom Berge & Achim Schmillen, 2023. "Effects of mass layoffs on local employment—evidence from geo-referenced data," Journal of International Economic Law, Oxford University Press, vol. 23(3), pages 509-539.
    17. Kube, Roland & von Graevenitz, Kathrine & Löschel, Andreas & Massier, Philipp, 2019. "Do voluntary environmental programs reduce emissions? EMAS in the German manufacturing sector," Energy Economics, Elsevier, vol. 84(S1).
    18. Ojala, Hannu & Malo, Pekka & Penttinen, Esko, 2023. "Private firms’ tax aggressiveness and lightweight pre-tax-audit interventions by the tax administration," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    19. Matteo Aquilina & Giulio Cornelli & Marina Sanchez del Villar, 2024. "Regulation, information asymmetries and the funding of new ventures," BIS Working Papers 1162, Bank for International Settlements.
    20. Reizer, Balázs, 2022. "Employment and Wage Consequences of Flexible Wage Components," Labour Economics, Elsevier, vol. 78(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:osf:socarx:p2qvh. 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: OSF (email available below). General contact details of provider: https://arabixiv.org .

    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.