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Long Social Distancing

Author

Listed:
  • Barrero, José María

    (Instituto Tecnológico Autónomo de México Business School)

  • Bloom, Nicholas

    (Stanford University)

  • Davis, Steven J.

    (Hoover Institution)

Abstract

More than ten percent of Americans with recent work experience say they will continue social distancing after the COVID-19 pandemic ends, and another 45 percent will do so in limited ways. We uncover this Long Social Distancing phenomenon in our monthly Survey of Working Arrangements and Attitudes. It is more common among older persons, women, the less educated, those who earn less, and in occupations and industries that require many face-to-face encounters. People who intend to continue social distancing have lower labor force participation – unconditionally, and conditional on demographics and other controls. Regression models that relate outcomes to intentions imply that Long Social Distancing reduced participation by 2.5 percentage points in the first half of 2022. Separate self- assessed causal effects imply a reduction of 2.0 percentage points. The impact on the earnings-weighted participation rate is smaller at about 1.4 percentage points. This drag on participation reduces potential output by nearly one percent and shrinks the college wage premium. Economic reasoning and evidence suggest that Long Social Distancing and its effects will persist for many months or years.

Suggested Citation

  • Barrero, José María & Bloom, Nicholas & Davis, Steven J., 2022. "Long Social Distancing," IZA Discussion Papers 15644, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15644
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    More about this item

    Keywords

    social distancing; infection worries; pandemic; labor force participation; potential output; college wage premium; self- assessed causal effects; COVID-19;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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