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Labour Supply during Lockdown and a “New Normal”: The Case of the Netherlands 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 lock-down, 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

Author

Listed:
  • Hans-Martin von Gaudecker

    (Department of Economics at the University of Bonn, IZA & ECONtribute)

  • Radost Holler

    (University of Bonn)

  • Lena Janys

    (University of Bonn & IZA)

  • Bettina Sifinger

    (Tilburg University)

  • Christian Zimpelmann

    (IZa & Bonn Graduate School of Economics)

Abstract

No abstract is available for this item.

Suggested Citation

  • Hans-Martin von Gaudecker & Radost Holler & Lena Janys & Bettina Sifinger & Christian Zimpelmann, 2020. "Labour Supply during Lockdown and a “New Normal”: The Case of the Netherlands Abstract: We document the evolution of hours of work using monthly data from February to June 2020. During this period, th," ECONtribute Discussion Papers Series 025, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:025
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    hours of work; telecommuting; essential workers; labor hoarding; COVID-19;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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