Template-Type: ReDIF-Paper 1.0
Title: Labour Supply During Lockdown and a “New Normal”: The Case of the Netherlands
Author-Name: Hans Martin von Gaudecker
Author-Email: hmgaudecker@gmail.com
Author-Name: Radost Holler
Author-Email:
Author-Name: Lena Janys
Author-Email:
Author-Name: Bettina Siflinger
Author-Email:
Author-Name: Christian Zimpelmann
Author-Email:


Classification-JEL:
Keywords:

Abstract: We document the evolution of hours of work using monthly data from
February to June 2020. During this period, the Netherlands experienced
a quick spread of the SARS-CoV-2 virus, enacted a lockdown for a period
of six weeks and gradually opened thereafter. We show that during lockdown, substitutability between work from home and at the workplace or
essential worker status are key to maintain a large fraction of pre-crisis
hours of work. These pandemic-specific mechanisms become much less important as social distancing restrictions are eased in May and June. Labor
supply recovers quickly in sectors affected heavily during lockdown, but
goes down in other areas of the economy. The latter is unlikely caused by
pandemic-induced supply changes; diminished demand is a more plausible
explanation. Analyzing take-up of economic support programs, we find
suggestive evidence that wage subsidies and other programs helped limit
the early-stage impact of the crisis along the extensive margin.

Note: 
Length: 40
Creation-Date: 2020-09
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp211
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2020_211