Short-Run Effects of COVID-19 on U.S. Worker Transitions

Working Paper: NBER ID: w27315

Authors: Benjamin W. Cowan

Abstract: I use Current Population Survey Data from February and April 2020 to examine how individual workers have transitioned between labor-market states and which workers have been hurt most by the COVID-19 pandemic. I find not only large effects on workers becoming unemployed but also a decline in labor-force participation, an increase in absence from one’s job, and a decrease in hours worked. Generally, more vulnerable populations—racial and ethnic minorities, those born outside the U.S., women with children, the least educated, and workers with a disability—have experienced the largest declines in the likelihood of (full-time) work and work hours.

Keywords: COVID-19; labor market; worker transitions; unemployment; vulnerable populations

JEL Codes: J1; J2; J6


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Pandemic (H12)Unemployment Rate (J64)
Pandemic (H12)Labor-Force Participation (J49)
Pandemic (H12)Full-Time Work Decline for Vulnerable Populations (J29)
Racial and Ethnic Minorities (J15)Full-Time Work (J29)
Women with Children (J12)Full-Time Employment (J29)
Pandemic (H12)Inequalities in Labor Market (J70)

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