Adjustments of local labour markets to the COVID-19 crisis: the role of digitalisation and working-from-home
Employment responses to the COVID-19 crisis differed widely across German local labour markets at the beginning of the pandemic, with differences in short-time work rates of up to 20 percentage points. We show that digital capital, and to a lesser extent working-from-home, were essential for the res...
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| Main Authors: | , , |
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| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Mannheim, Germany
ZEW - Leibniz Centre for European Economic Research
[2022]
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| Series: | Discussion paper
no. 22, 031 (08/2022) |
| In: |
Discussion paper (no. 22, 031 (08/2022))
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| Subjects: | |
| Online Access: | Verlag, kostenfrei: https://madoc.bib.uni-mannheim.de/63425 Verlag, kostenfrei: https://ftp.zew.de/pub/zew-docs/dp/dp22031.pdf Verlag, kostenfrei: https://www.zew.de/publikationen/adjustments-of-local-labour-markets-to-the-covid-19-crisis-the-role-of-digitalisation-and-working-from-home Resolving-System, kostenfrei: http://hdl.handle.net/10419/262377 Resolving-System, kostenfrei: https://nbn-resolving.org/urn:nbn:de:bsz:180-madoc-634250 Langzeitarchivierung Nationalbibliothek, kostenfrei: https://d-nb.info/1273229746/34 
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| Author Notes: | Sarra Ben Yahmed, Francesco Berlingieri, and Eduard Brüll |
| Summary: | Employment responses to the COVID-19 crisis differed widely across German local labour markets at the beginning of the pandemic, with differences in short-time work rates of up to 20 percentage points. We show that digital capital, and to a lesser extent working-from-home, were essential for the resilience of local labour markets. Using an empirical strategy that combines a difference-in-differences approach with propensity score weighting, we find that local exposure to digital capital reduced short-time work usage by up to 4 percentage points and the effect lasted for about 8 months. Working-from-home potential lowered short-time work rates, but only in local labour markets exposed to digital capital, and in the first four months of the pandemic when a strict lockdown was in place. Differences in unemployment rates across local labour markets were at most 2 percentage points and did not depend on digital capital or working-from-home potential. |
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| Physical Description: | Online Resource |