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Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey

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  • Guven, Cahit
  • Sotirakopoulos, Panagiotis
  • Ulker, Aydogan

Abstract

We examine the short-term labour market effects of COVID-19 and the associated national lockdown in Australia by estimating person-fixed-effects models using the Longitudinal Labour Force Survey. COVID-19 decreased labour force participation (LFP) by 2.1%, increased unemployment by 1.1% and reduced weekly working hours by 1.1. The national lockdown decreased LFP by 3.3%, increased unemployment by 1.7%, and decreased weekly working hours by 2.5. The probability of working on Fridays decreased by 10% while working fewer hours due to being on leave, work shifts, not having enough work and losing jobs all increased due to the lockdown. The pandemic and the lockdown increased underemployment and job search efforts significantly. In terms of heterogeneity of these effects, our analysis shows that those with up to high-school education experienced larger reductions in their LFP and working hours than others. However, immigrants and individuals with shorter job tenure or occupations unsuitable for remote work were hit the hardest in terms of unemployment.

Suggested Citation

  • 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).
  • Handle: RePEc:zbw:glodps:635
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    References listed on IDEAS

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    Cited by:

    1. Andrew E. Clark & Anthony Lepinteur, 2021. "Pandemic Policy and Life Satisfaction in Europe," PSE Working Papers halshs-03202345, HAL.
    2. Armanda Cetrulo & Dario Guarascio & Maria Enrica Virgillito, 2020. "Working from home and the explosion of enduring divides: income, employment and safety risks," LEM Papers Series 2020/38, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    More about this item

    Keywords

    COVID-19; National Lockdown; Labour Market; Short-term; Australia;
    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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