The Short-Term Economic Consequences of Covid-19: Occupation Tasks and Mental Health in Canada

101 Pages Posted: 19 May 2020

See all articles by Louis-Philippe Béland

Louis-Philippe Béland

Carleton University

Abel Brodeur

University of Ottawa - Department of Economics; IZA Institute of Labor Economics

Derek Mikola

Carleton University

Taylor Wright

University of Ottawa

Abstract

In this paper, we document the short-term impact of COVID-19 on labour market outcomes in Canada. Following a pre-analysis plan, we investigate the negative impact of the pandemic on unemployment, labour force participation, hours and wages in Canada. We find that COVID-19 had drastic negative effects on labour market outcomes, with the largest effects for younger, not married, and less educated workers.We investigate whether the economic consequences of this pandemic were larger for certain occupations. We then built indices for whether (1) workers are relatively more exposed to disease, (2) work with proximity to coworkers, (3) are essential workers, and (4) can easily work remotely. Our estimates suggest that the impact of the pandemic was significantly more severe for workers more exposed to disease and workers that work in proximity to coworkers, while the effects are significantly less severe for essential workers and workers that can work remotely.Last, we rely on a unique survey, the Canadian Perspective Survey, and show that reported mental health is significantly lower among the most affected workers during the pandemic. We also find that those who were absent form work because of COVID-19 are more concerned with meeting their financial obligations and with losing their job than those who remain working outside of home, while those who transition from working outside the home to from home are not as concerned with job loss.

Keywords: COVID-19, unemployment, wages, remote work, essential workers, exposure to disease

JEL Classification: I15, I18, J21

Suggested Citation

Béland, Louis-Philippe and Brodeur, Abel and Mikola, Derek and Wright, Taylor, The Short-Term Economic Consequences of Covid-19: Occupation Tasks and Mental Health in Canada. IZA Discussion Paper No. 13254, Available at SSRN: https://ssrn.com/abstract=3602430

Louis-Philippe Béland (Contact Author)

Carleton University

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Ottawa, K1S 5B6
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Abel Brodeur

University of Ottawa - Department of Economics ( email )

200 Wilbrod Street
Ottawa, Ontario K1N 6N5
Canada

HOME PAGE: http://https://sites.google.com/site/abelbrodeur/

IZA Institute of Labor Economics ( email )

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Germany

Derek Mikola

Carleton University

1125 colonel By Drive
Ottawa, K1S 5B6
Canada

Taylor Wright

University of Ottawa

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