IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_9311.html
   My bibliography  Save this paper

Contact-Intensity, Collapsing Entertainment Sector and Wage Inequality: A Finite Change Model of Covid-19 Impact

Author

Listed:
  • Sugata Marjit
  • Gouranga Gopal Das

Abstract

In a general equilibrium model with online, entertainment and informal sectors employing skill, unskilled, and capital, we show that Covid-19 could cause polarization pushing contact-intensive entertainment industry on the brink of collapse while other two survive. Dual roles of factor-intensity and contact-intensity contribute to such finite changes, triggering inter-skill wage inequality.

Suggested Citation

  • Sugata Marjit & Gouranga Gopal Das, 2021. "Contact-Intensity, Collapsing Entertainment Sector and Wage Inequality: A Finite Change Model of Covid-19 Impact," CESifo Working Paper Series 9311, CESifo.
    • Handle: RePEc:ces:ceswps:_9311
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9311.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sugata Marjit & Manoj Pant & Sugandha Huria, 2020. "Unskilled immigration, technical progress, and wages—Role of the household sector," Review of International Economics, Wiley Blackwell, vol. 28(1), pages 235-251, February.
    2. Ruffin, Roy J., 1981. "Trade and factor movements with three factors and two goods," Economics Letters, Elsevier, vol. 7(2), pages 177-182.
    3. Das, Gouranga Gopal & Marjit, Sugata & Kar, Mausumi, 2020. "The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 557-582.
    4. David Baqaee & Emmanuel Farhi, 2021. "Keynesian Production Networks and the COVID-19 Crisis: A Simple Benchmark," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 272-276, May.
    5. Karabulut, Gokhan & Zimmermann, Klaus F. & Bilgin, Mehmet Huseyin & Doker, Asli Cansin, 2021. "Democracy and COVID-19 outcomes," Economics Letters, Elsevier, vol. 203(C).
    6. Buesa, Alejandro & Pérez, Javier J. & Santabárbara, Daniel, 2021. "Awareness of pandemics and the impact of COVID-19," Economics Letters, Elsevier, vol. 204(C).
    7. Claudia Goldin & Lawrence F. Katz, 1998. "The Origins of Technology-Skill Complementarity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 693-732.
    8. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Brent H. Meyer, 2021. "COVID-19 Is a Persistent Reallocation Shock," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 287-291, May.
    9. John Grigsby & Erik Hurst & Ahu Yildirmaz & Yulia Zhestkova, 2021. "Nominal Wage Adjustments during the Pandemic Recession," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 258-262, May.
    10. Ronald W Jones, 2018. "International Trade Theory and Competitive Models:Features, Values, and Criticisms," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 10297, September.
    11. Miklós Koren & Rita Pető, 2020. "Business disruptions from social distancing," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-14, September.
    12. Glocker, Christian & Piribauer, Philipp, 2021. "The determinants of output losses during the Covid-19 pandemic," Economics Letters, Elsevier, vol. 204(C).
    13. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Brent H. Meyer, 2021. "COVID-19 Is a Persistent Reallocation Shock," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 287-291, May.
    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. Marjit, Sugata & Das, Gouranga, 2022. "Contact Intensity, Unemployment and Finite Change - The Case of Entertainment Sector under Pandemic: A General Equilibrium Approach," GLO Discussion Paper Series 1200, Global Labor Organization (GLO).
    2. Mandal, Biswajit & Roy Chakraborty, Labani & Sanyal, Alapan, 2023. "A Hybrid Mode of Production, Transaction, and Economic Growth: Implication of Digitalization," MPRA Paper 116960, University Library of Munich, Germany.

    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. Agostino Consolo & Filippos Petroulakis, 2024. "Did COVID‐19 induce a reallocation wave?," Economica, London School of Economics and Political Science, vol. 91(364), pages 1349-1390, October.
    2. Marjit, Sugata & Das, Gouranga, 2022. "Contact Intensity, Unemployment and Finite Change - The Case of Entertainment Sector under Pandemic: A General Equilibrium Approach," GLO Discussion Paper Series 1200, Global Labor Organization (GLO).
    3. Bauer Anja & Keveloh Kristin & Mamertino Mariano & Weber Enzo, 2023. "Competing for Jobs: How COVID-19 Changes Search Behaviour in the Labour Market," German Economic Review, De Gruyter, vol. 24(4), pages 323-347, December.
    4. Balgová, Mária & Trenkle, Simon & Zimpelmann, Christian & Pestel, Nico, 2022. "Job search during a pandemic recession: Survey evidence from the Netherlands," Labour Economics, Elsevier, vol. 75(C).
    5. Barrero, Jose Maria & Bloom, Nick & Davis, Steven J., 2020. "Why Working From Home Will Stick," SocArXiv wfdbe, Center for Open Science.
    6. Figura, Andrew & Waller, Chris, 2024. "What does the beveridge curve tell us about the likelihood of soft landings?," Journal of Economic Dynamics and Control, Elsevier, vol. 169(C).
    7. Hikari Ban, 2010. "Factor Substitution and Relative Factor Prices," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 562-573, August.
    8. Tito Boeri & Pierre Cahuc, 2022. "Labor Market Insurance Policies in the XXI Century," Post-Print hal-03878719, HAL.
    9. Serdar Birinci & Yusuf Mercan & Kurt See, 2024. "Mismatch Unemployment During COVID-19 and the Post-Pandemic Labor Shortages," Research Working Paper RWP 24-10, Federal Reserve Bank of Kansas City.
    10. Konings, Jozef & Magerman, Glenn & Van Esbroeck, Dieter, 2023. "The impact of firm-level Covid rescue policies on productivity growth and reallocation," European Economic Review, Elsevier, vol. 157(C).
    11. Mauro Caselli & Andrea Fracasso & Sergio Scicchitano, 2022. "From the lockdown to the new normal: individual mobility and local labor market characteristics following the COVID-19 pandemic in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1517-1550, October.
    12. Nicholas Bloom & Steven J. Davis & Yulia Zhestkova, 2021. "COVID-19 Shifted Patent Applications toward Technologies That Support Working from Home," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 263-266, May.
    13. Basso, Gaetano & Depalo, Domenico & Lattanzio, Salvatore, 2023. "Worker flows and reallocation during the recovery," Labour Economics, Elsevier, vol. 83(C).
    14. Costas Siriopoulos & Sophia A. Kassapi, 2023. "Female Labor Participation and Mother’s Daycare in Greece Pre- and Post-COVID-19 Pandemic: A Regional Analysis," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    15. John Mondragon & Johannes F. Wieland, 2022. "Housing Demand and Remote Work," Working Paper Series 2022-11, Federal Reserve Bank of San Francisco.
    16. Obadić Alka & Viljevac Viktor, 2024. "Labour Market Tightness and Matching Efficiency in Different Labour Market Segments – Do Differences in Education Matter?," South East European Journal of Economics and Business, Sciendo, vol. 19(1), pages 1-17.
    17. Gómez, Ángel Luis & Lattanzio, Salvatore, 2024. "Worker reallocation in Italy and Spain after the COVID-19 pandemic," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 5(1).
    18. Demirgüç-Kunt, Asli & Lokshin, Michael & Torre, Iván, 2024. "Protect incomes or protect jobs? The role of social policies in post-pandemic recovery," World Development, Elsevier, vol. 182(C).
    19. Peter Lambert & Chris Larkin, 2024. "Has work from home shifted the US electoral map?," CEP Occasional Papers 67, Centre for Economic Performance, LSE.
    20. Rashmi Ahuja & Sugata Marjit, 2022. "Liberalizing Trade and Capital Flows and the Wage Gap: Does Sequencing Matter?," Open Economies Review, Springer, vol. 33(2), pages 375-389, April.

    More about this item

    Keywords

    wage-gap; Covid; contact-intensive; general equilibrium;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    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:ces:ceswps:_9311. See general information about how to correct material in RePEc.

    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: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.