IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/602.html
   My bibliography  Save this paper

Wage Losses and Inequality in Developing Countries: labor market and distributional consequences of Covid-19 lockdowns in Turkey

Author

Listed:
  • Duman, Anil

Abstract

We develop a possibility to work index (PWI) taking the ability to work from home and workplace closures into account. By using the data from the HLFS in Turkey, we examine the individual level determinants of PWI. Our findings reveal that PWI and ability to work from home are significantly different, and essential or closed jobs are not necessarily concentrated at the bottom of the wage distribution. Therefore, from a policy perspective, PWI can be a more encompassing measure of risk and can assist the public authorities to design better targeted social policies. Our results also point out that wage inequality is likely to deteriorate as a result of the supply shocks from confinement policies. However, the overall negative distributional effects of lockdown and disparity between employees in different economic activities become more substantial with duration. These suggest that in order to avoid major increases in earning inequalities and related social problems, governments would be better off with shorter and stricter lockdowns.

Suggested Citation

  • Duman, Anil, 2020. "Wage Losses and Inequality in Developing Countries: labor market and distributional consequences of Covid-19 lockdowns in Turkey," GLO Discussion Paper Series 602, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:602
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/222317/1/GLO-DP-0602.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Perugini, Cristiano & Vladisavljević, Marko, 2020. "Social Stability Challenged: Pandemics, Inequality and Policy Responses," IZA Discussion Papers 13249, Institute of Labor Economics (IZA).
    2. Charles Gottlieb & Jan Grobovsek & Markus Poschke, 2020. "Working from Home across Countries," Cahiers de recherche 07-2020, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    3. Ospina, Raydonal & Ferrari, Silvia L.P., 2012. "A general class of zero-or-one inflated beta regression models," Computational Statistics & Data Analysis, Elsevier, vol. 56(6), pages 1609-1623.
    4. Laura Montenovo & Xuan Jiang & Felipe Lozano Rojas & Ian M. Schmutte & Kosali I. Simon & Bruce A. Weinberg & Coady Wing, 2020. "Determinants of Disparities in Covid-19 Job Losses," NBER Working Papers 27132, National Bureau of Economic Research, Inc.
    5. Maho Hatayama & Mariana Viollaz & Hernan Winkler, 2020. "Jobs’ Amenability to Working from Home: Evidence from Skills Surveys for 53 Countries," CEDLAS, Working Papers 0263, CEDLAS, Universidad Nacional de La Plata.
    6. R Maria del Rio-Chanona & Penny Mealy & Anton Pichler & François Lafond & J Doyne Farmer, 2020. "Supply and demand shocks in the COVID-19 pandemic: an industry and occupation perspective," Oxford Review of Economic Policy, Oxford University Press, vol. 36(Supplemen), pages 94-137.
    7. Delaporte, Isaure & Peña, Werner, 2020. "Working From Home Under COVID-19: Who Is Affected? Evidence From Latin American and Caribbean Countries," GLO Discussion Paper Series 528, Global Labor Organization (GLO).
    8. Jean-Noël Barrot & Basile Grassi & Julien Sauvagnat, 2020. "Sectoral Effects of Social Distancing," Working Papers hal-02896730, HAL.
    9. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giovanni Gallo & Michele Raitano, 2020. "SOS incomes: Simulated effects of COVID-19 and emergency benefits on individual and household income distribution in Italy," Working Papers 566, ECINEQ, Society for the Study of Economic Inequality.
    2. Luca Bonacini & Giovanni Gallo & Sergio Scicchitano, 2021. "Working from home and income inequality: risks of a ‘new normal’ with COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 303-360, January.

    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. Gottlieb, Charles & Grobovšek, Jan & Poschke, Markus & Saltiel, Fernando, 2021. "Working from home in developing countries," European Economic Review, Elsevier, vol. 133(C).
    2. Berniell, Lucila & Fernandez, Daniel, 2021. "Jobs’ amenability is not enough: The role of household inputs for safe work under social distancing in Latin American cities," World Development, Elsevier, vol. 140(C).
    3. Charles Gottlieb & Jan Grobovsek & Markus Poschke & Fernando Saltiel, 2020. "Lockdown Accounting," Cahiers de recherche 18-2020, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    4. Antoine Mandel & Vipin Veetil, 2020. "The Economic Cost of COVID Lockdowns: An Out-of-Equilibrium Analysis," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 431-451, October.
    5. Nicola Melluso & Andrea Bonaccorsi & Filippo Chiarello & Gualtiero Fantoni, 2021. "Rapid detection of fast innovation under the pressure of COVID-19," Papers 2102.00197, arXiv.org.
    6. Naudé, Wim, 2020. "Entrepreneurial Recovery from COVID-19: Decentralization, Democratization, Demand, Distribution, and Demography," IZA Discussion Papers 13436, Institute of Labor Economics (IZA).
    7. Ainaa, Carmen & Brunetti, Irene & Mussida, Chiara & Scicchitano, Sergio, 2021. "Who lost the most? Distributive effects of COVID-19 pandemic," GLO Discussion Paper Series 829, Global Labor Organization (GLO).
    8. Marouani, Mohamed Ali & Minh, Phuong Le, 2020. "The first victims of Covid-19 in developing countries? The most vulnerable workers to the lockdown of the Tunisian economy," GLO Discussion Paper Series 581, Global Labor Organization (GLO).
    9. Palomino, Juan C. & Rodríguez, Juan G. & Sebastian, Raquel, 2020. "Wage inequality and poverty effects of lockdown and social distancing in Europe," European Economic Review, Elsevier, vol. 129(C).
    10. Antoine Mandel & Vipin Veetil, 0. "The Economic Cost of COVID Lockdowns: An Out-of-Equilibrium Analysis," Economics of Disasters and Climate Change, Springer, vol. 0, pages 1-21.
    11. Heinrich, Torsten, 2021. "Epidemics in modern economies," MPRA Paper 107578, University Library of Munich, Germany.
    12. Marta Fana & Sergio Torrejón Pérez & Enrique Fernández-Macías, 2020. "Employment impact of Covid-19 crisis: from short term effects to long terms prospects," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 391-410, September.
    13. Niembro, Andrés & Calá, Carla Daniela, 2020. "A first exploratory analysis of the regional economic impact of COVID-19 in Argentina," Nülan. Deposited Documents 3376, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    14. Ng, Wung Lik, 2020. "To lockdown? When to peak? Will there be an end? A macroeconomic analysis on COVID-19 epidemic in the United States," Journal of Macroeconomics, Elsevier, vol. 65(C).
    15. Bennedsen, Morten & Larsen, Birthe & Schmutte, Ian & Scur, Daniela, 2020. "Preserving job matches during the COVID-19 pandemic: firm-level evidence on the role of government aid," GLO Discussion Paper Series 588, Global Labor Organization (GLO).
    16. Anton Pichler & Marco Pangallo & R. Maria del Rio-Chanona & Franc{c}ois Lafond & J. Doyne Farmer, 2020. "Production networks and epidemic spreading: How to restart the UK economy?," Papers 2005.10585, arXiv.org.
    17. Daniel Garrote Sanchez & Nicolas Gomez Parra & Caglar Ozden & Bob Rijkers & Mariana Viollaz & Hernan Winkler, 0. "Who on Earth Can Work from Home?," World Bank Research Observer, World Bank Group, vol. 36(1), pages 67-100.
    18. Cecilia Peluffo & Mariana Viollaz, 2021. "Intra-household exposure to labor market risk in the time of Covid-19: lessons from Mexico," Review of Economics of the Household, Springer, vol. 19(2), pages 327-351, June.
    19. KITAGAWA Ritsu & KURODA Sachiko & OKUDAIRA Hiroko & OWAN Hideo, 2021. "Working from Home: Its Effects on Productivity and Mental Health," Discussion papers 21024, Research Institute of Economy, Trade and Industry (RIETI).
    20. Crowley, Frank & Doran, Justin & Ryan, Geraldine, 2020. "The impact of Covid-19 restrictions on workers: Who is most exposed?," SRERC Working Paper Series SRERCWP2020-3, University College Cork (UCC), Spatial and Regional Economic Research Centre (SRERC).

    More about this item

    Keywords

    workplace closures; wage loss; wage inequality; teleworking; developing countries;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    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:zbw:glodps:602. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/glabode.html .

    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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.