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Non-working workers. The unequal impact of Covid-19 on the Spanish labour market

Author

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  • Antonio Villar

    (Universidad Pablo de Olavide)

  • José Ignacio García Pérez

    (Universidad Pablo de Olavide)

Abstract

We present an evaluation model that aims at developing a synthetic index of non-employment that combines incidence and severity. This index considers, besides conventional unemployment rates, unemployment duration, discouraged workers and workers with suspended jobs. We have applied this methodology to the analysis of the impact of the Covid-19 in the Spanish labour market. The impact of the epidemics on the job market has been very asymmetric by regions and types of workers. Compared to the situation in the third quarter of 2019 we find that one year later the non-working index arrived to more than 150 in regions in the south whereas it is below 75 in regions like Navarra, Catalunya or Madrid. The dynamics of this indicator, though, shows that the larger increments have occurred among the regions with lower initial values so that the variability is now smaller. Regarding age and education, we find that the young (and among them the less educated) are the population subgroup that suffers more intensely the impact of this new economic crisis. On the contrary, older workers seem to improve for all education subgroups during 2020. The main reason behind this is the asymmetric concentration of temporary collective redundancy scheme measures among older workers, what is very much connected with the dual character of the Spanish labour market regarding contract types and job security.

Suggested Citation

  • Antonio Villar & José Ignacio García Pérez, 2020. "Non-working workers. The unequal impact of Covid-19 on the Spanish labour market," Working Papers 564, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2020-564
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    References listed on IDEAS

    as
    1. Antonio Villar, 2017. "Inequality and Welfare," Lecture Notes in Economics and Mathematical Systems, in: Lectures on Inequality, Poverty and Welfare, chapter 0, pages 93-112, Springer.
    2. Till von Wachter, 2020. "The Persistent Effects of Initial Labor Market Conditions for Young Adults and Their Sources," Journal of Economic Perspectives, American Economic Association, vol. 34(4), pages 168-194, Fall.
    3. Satya R. Chakravarty, 2009. "Inequality, Polarization and Poverty," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-79253-8, July.
    4. Antonio Villar, 2017. "Lectures on Inequality, Poverty and Welfare," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-319-45562-4, October.
    5. Gianni De Fraja & Sara Lemos & James Rockey, 2021. "The Wounds That Do Not Heal: The Lifetime Scar of Youth Unemployment," Economica, London School of Economics and Political Science, vol. 88(352), pages 896-941, October.
    6. J Ignacio García-Pérez & Ioana Marinescu & Judit Vall Castello, 2019. "Can Fixed-term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain," The Economic Journal, Royal Economic Society, vol. 129(620), pages 1693-1730.
    7. Lucía Gorjón & Sara Rica & Antonio Villar, 2020. "The Cost of Unemployment from a Social Welfare Approach: The Case of Spain and Its Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(3), pages 955-976, August.
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    More about this item

    Keywords

    Unemployment; Severity; Incidence; Unemployment Duration; Inequality; Covid-19.;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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