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The short-term Economic Consequences of COVID-19: Occupation Tasks and Mental Health in Canada

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  • Beland, Louis-Philippe
  • Brodeur, Abel
  • Mikola, Derek
  • Wright, Taylor

Abstract

In this paper, we document the short-term impact of COVID-19 on labour mar- ket outcomes in Canada. Following a pre-analysis plan, we investigate the negative impact of the pandemic on unemployment, labour force participation, hours and wages in Canada. We find that COVID-19 had drastic negative effects on labour market outcomes, with the largest effects for younger, not married, and less edu- cated workers. We investigate whether the economic consequences of this pandemic were larger for certain occupations. We then built indices for whether (1) workers are relatively more exposed to disease, (2) work with proximity to coworkers, (3) are essential workers, and (4) can easily work remotely. Our estimates suggest that the impact of the pandemic was significantly more severe for workers more exposed to disease and workers that work in proximity to coworkers, while the effects are significantly less severe for essential workers and workers that can work remotely. Last, we rely on a unique survey, the Canadian Perspective Survey, and show that reported mental health is significantly lower among the most affected workers dur- ing the pandemic. We also find that those who were absent form work because of COVID-19 are more concerned with meeting their financial obligations and with losing their job than those who remain working outside of home, while those who transition from working outside the home to from home are not as concerned with job loss.

Suggested Citation

  • Beland, Louis-Philippe & Brodeur, Abel & Mikola, Derek & Wright, Taylor, 2020. "The short-term Economic Consequences of COVID-19: Occupation Tasks and Mental Health in Canada," GLO Discussion Paper Series 542, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:542
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    Cited by:

    1. Giuntella, Osea & Hyde, Kelly & Saccardo, Silvia & Sadoff, Sally, 2020. "Lifestyle and Mental Health Disruptions during COVID-19," IZA Discussion Papers 13569, Institute of Labor Economics (IZA).
    2. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    3. Milosh, Maria & Painter, Marcus & Sonin, Konstantin & Van Dijcke, David & Wright, Austin L., 2021. "Unmasking partisanship: Polarization undermines public response to collective risk," Journal of Public Economics, Elsevier, vol. 204(C).
    4. Guven, Cahit & Sotirakopoulos, Panagiotis & Ulker, Aydogan, 2020. "Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey," GLO Discussion Paper Series 635, Global Labor Organization (GLO).
    5. Huebener, Matthias & Waights, Sevrin & Spieß, C. Katharina & Siegel, Nico A. & Wagner, Gert G., 2021. "Parental well-being in times of Covid-19 in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 91-122.
    6. Louis-Philippe Beland & Oluwatobi Fakorede & Derek Mikola, 2020. "Short-Term Effect of COVID-19 on Self-Employed Workers in Canada," Canadian Public Policy, University of Toronto Press, vol. 46(S1), pages 66-81, July.
    7. Kosteas, Vasilios D. & Renna, Francesco & Scicchitano, Sergio, 2022. "Covid-19 and Working from Home: toward a "new normal"?," GLO Discussion Paper Series 1013, Global Labor Organization (GLO).
    8. Beland, Louis-Philippe & Brodeur, Abel & Haddad, Joanne & Mikola, Derek, 2020. "Covid-19, Family Stress and Domestic Violence: Remote Work, Isolation and Bargaining Power," GLO Discussion Paper Series 571, Global Labor Organization (GLO).
    9. Koebel, Kourtney & Pohler, Dionne, 2020. "Labor markets in crisis: The causal impact of Canada's COVD19 economic shutdown on hours worked for workers across the earnings distribution," CLEF Working Paper Series 25, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    10. Hoehn-Velasco, Lauren & Silverio-Murillo, Adan & de la Miyar, Jose Roberto Balmori, 2021. "The great crime recovery: Crimes against women during, and after, the COVID-19 lockdown in Mexico," Economics & Human Biology, Elsevier, vol. 41(C).
    11. Gigi Foster, 2020. "Early estimates of the impact of COVID-19 disruptions on jobs, wages, and lifetime earnings of schoolchildren in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(2), pages 129-151.
    12. Mathias Huebener & Sevrin Waights & C. Katharina Spiess & Nico A. Siegel & Gert G. Wagner, 2021. "Parental well-being in times of Covid-19 in Germany," Review of Economics of the Household, Springer, vol. 19(1), pages 91-122, March.
    13. Louis-Philippe Beland & Abel Brodeur & Joanne Haddad & Derek Mikola, 2020. "Determinants of Family Stress and Domestic Violence: Lessons from the COVID-19 Outbreak," Carleton Economic Papers 20-09, Carleton University, Department of Economics, revised Apr 2021.
    14. Giofré, Maela, 2021. "COVID-19 stringency measures and foreign investment: An early assessment," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    15. Kim, Seonghoon & Koh, Kanghyock & Zhang, Xuan, 2020. "Short-Term Impact of COVID-19 on Consumption and Labor Market Outcomes: Evidence from Singapore," IZA Discussion Papers 13354, Institute of Labor Economics (IZA).
    16. Maryna Tverdostup, 2021. "Gender Gaps in Employment, Wages, and Work Hours: Assessment of COVID-19 Implications," wiiw Working Papers 202, The Vienna Institute for International Economic Studies, wiiw.
    17. Lea Immel & Florian Neumeier & Andreas Peichl, 2021. "The Unequal Consequences of the Covid-19 Pandemic: Evidence from a Large Representative German Population Survey," CESifo Working Paper Series 9038, CESifo.
    18. Onur Altindag & Bilge Erten & Pinar Keskin, 2022. "Mental Health Costs of Lockdowns: Evidence from Age-Specific Curfews in Turkey," American Economic Journal: Applied Economics, American Economic Association, vol. 14(2), pages 320-343, April.

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    More about this item

    Keywords

    COVID-19; unemployment; wages; remote work; essential workers; exposure to disease;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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