Health risks and labour supply : evidence from the COVID-19 pandemic

Richardson, Joseph (2025) Health risks and labour supply : evidence from the COVID-19 pandemic. Economica. ISSN 0013-0427

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Abstract

This paper explores the relationship between health risks from COVID-19 and UK labour supply, using pre-existing conditions as a source of variation in COVID-19 health risk. We find that those with pre-existing conditions were less likely to work during the pandemic after controlling for a rich set of covariates, including labour supplied pre-pandemic, but only when remote work was unavailable. This relationship begins by April 2020, persists through to September 2021, and shows signs of fading after COVID-19 risks had fallen in 2022. Our results are strong enough to explain a 1–1.5 percentage point drop in employment during the pandemic. Placebo tests confirm that our estimates do not reflect labour demand shocks, and that a negative relationship between pre-existing conditions and labour supplied, conditional upon the covariates, did not exist pre-pandemic.

Item Type:
Journal Article
Journal or Publication Title:
Economica
Uncontrolled Keywords:
Research Output Funding/no_not_funded
Subjects:
?? no - not fundednoeconomics and econometricsi12j22j40 ??
ID Code:
228114
Deposited By:
Deposited On:
07 Mar 2025 14:10
Refereed?:
Yes
Published?:
Published
Last Modified:
08 Mar 2025 03:50