Gist of results

• Labour market:
  • Small effects on extensive margin
  • Hours of work took deep dive, back up quickly
  • Early support programmes worked well
  • No rise in inequality
• Mental well-being:
  • Strong reduction in mental health score in March
  • Back up to ≈normal levels by May
  • Very different for parents depending on who buffers shock

Based on two papers

1. Gaudecker, H.-M. von, Holler, R., Janys, L., Siflinger, B. M., & Zimpelmann, C. (2020). Labour Supply during Lockdown and a “New Normal”: The Case of the Netherlands. IZA DP 13623.
2. Siflinger, B., Paffenholz, M., Seitz, S., Mendel, M., Gaudecker, H.-M. von (2021). The CoViD-19 Pandemic and Mental Health: Distentangling Crucial Channels. CRC 224 DP 271.

LFP / Unemployment rates

Hours of work

• Best short-term measure for labour market activity in presence of
  • firing restrictions
  • employment subsidies
• Interpretation as labour demand / direct restrictions seems fine
  • e.g., see below that no add’l effect for parents
• Measurement before CoViD-19 likely a bit too high

Hours worked / worked from home

Persistence

Non-Essential vs. Essential Work

Support Programmes

• NOW: Labour subsidies scheme
  • Loss in firm revenue ≥ 20% ⟶ Reimbursement of 30% of wage bill
  • Cannot fire workers
  • No other strings attached
• TOZO: Income support measure for self-employed
• TOGS: One-time payment for entrepeneurs in directly affected sectors

Affected by support programme

Inequality

Hours worked / wfh by Gender