The Social Gradient in Employment Loss during COVID-19

Lenke til artikkel:



Alstadsæter, Anette, Bernt Bratsberg, Simen Markussen, Oddbjørn Raaum, and Knut Røed




Frisch Rapport
Nummer i serie: 1

Sammendrag (engelsk)

We provide new evidence on the heterogeneous employment responses to the economic crisis induced by COVID-19. Utilizing monthly administrative pay records for all Norwegian employees, we document increases as well as reductions in employment and hours worked. With pre-crisis cohorts as controls, we use a difference-in-differences strategy to identify the effects of the crisis. Total pay (hours worked) dropped by 8% the first two months after the initial lockdown, followed by a quick recovery. By October 2021, we estimate a reduction in total hours worked of about 2%. The crisis affected prime-aged employees, senior workers, youth, and those initially unemployed differently. For prime-aged employees, we find monthly pay reductions in line with those for the whole economy. For senior wage earners and unemployed, the negative long-term employment effects were even larger. We identify significant social gradients, as persons with low past earnings, immigrants, and youth with a disadvantaged family background experienced more adverse consequences of the crisis.


Labor demand shock; COVID-19; Employment; Social Gradient


E24; J2; J4; J6; J11

Prosjekt info:

Oppdragsgiver: Forskningsrådet
Oppdragsgivers prosjektnr.: 316475
Frisch prosjekt: 1137 - The corona crisis and its economic consequences

Oppdragsgiver: NFR via NMBU
Oppdragsgivers prosjektnr.: 315769
Frisch prosjekt: 1677 - Employment, investment, and inequality in the aftermath of the Covid-19 crisis


Norges Forskningsråd