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Hours and income dynamics during the Covid-19 pandemic: The case of the Netherlands

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  • Zimpelmann, Christian
  • Gaudecker, Hans-Martin von
  • Holler, Radost
  • Janys, Lena
  • Siflinger, Bettina
Abstract
Using customized panel data spanning the entire year of 2020, we analyze the dynamics of working hours and household income across different stages of the Covid-19 pandemic. Like many other countries, during this period, the Netherlands experienced a quick spread of the SARS-CoV-2 virus, adopted a set of fairly strict social distancing measures, gradually reopened, and imposed another lockdown to contain the second wave. We show that socioeconomic status is strongly related to changes in working hours, especially when strict economic restrictions are in place. In contrast, household income is equally unaffected for all socioeconomic groups. Examining the drivers of these observations, we find that pandemic-specific job characteristics (the ability to work from home and essential worker status) help explain the socioeconomic gradient in total working hours. Household income is largely decoupled from shocks to working hours for employees. We provide suggestive evidence that large-scale labor hoarding schemes have helped insure employees against shocks to their employers.

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  • Zimpelmann, Christian & Gaudecker, Hans-Martin von & Holler, Radost & Janys, Lena & Siflinger, Bettina, 2021. "Hours and income dynamics during the Covid-19 pandemic: The case of the Netherlands," Labour Economics, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:labeco:v:73:y:2021:i:c:s0927537121000907
    DOI: 10.1016/j.labeco.2021.102055
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    Cited by:

    1. 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).
    2. Hans-Martin von Gaudecker & Radost Holler & Lenard Simon & Christian Zimpelmann, 2024. "Can Work from Home Help Balance the Parental Division of Labor?," ECONtribute Discussion Papers Series 321, University of Bonn and University of Cologne, Germany.
    3. Marco Caliendo & Daniel Graeber & Alexander S. Kritikos & Johannes Seebauer, 2023. "Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed," Entrepreneurship Theory and Practice, , vol. 47(3), pages 788-830, May.
    4. Merilen LAURIMAE & Tiiu PAAS, 2024. "Did Covid-19 strengthen the relationship between human capital and income? Evidence from administrative data," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 15, pages 134-156, June.
    5. Masayuki Morikawa, 2024. "Productivity dynamics of work from home: Firm-level evidence from Japan," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 465-487, April.
    6. Maria De Paola & Salvatore Lattanzio, 2023. "Parental labor market penalties during two years of COVID-19," Questioni di Economia e Finanza (Occasional Papers) 749, Bank of Italy, Economic Research and International Relations Area.
    7. Alstadsæter, Annette & Bratsberg, Bernt & Markussen, Simen & Raaum, Oddbjørn & Røed, Knut, 2023. "Social Gradients in Employment during and after the COVID-19 Pandemic," IZA Discussion Papers 16260, Institute of Labor Economics (IZA).
    8. MORIKAWA Masayuki, 2022. "Productivity Dynamics of Work from Home since the Onset of the COVID-19 Pandemic: Evidence from a panel of firm surveys," Discussion papers 22061, Research Institute of Economy, Trade and Industry (RIETI).
    9. Aleem, Majid & Sufyan, Muhammad & Ameer, Irfan & Mustak, Mekhail, 2023. "Remote work and the COVID-19 pandemic: An artificial intelligence-based topic modeling and a future agenda," Journal of Business Research, Elsevier, vol. 154(C).
    10. Emil Mihaylov, 2022. "Working from Home in the Netherlands: Looking Inside the Blackbox of Work and Occupations," Tinbergen Institute Discussion Papers 22-096/VI, Tinbergen Institute.

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