Yu, Jinghui (2022) The effects of COVID-19 on the labor market. Journal of Economics, Business and Management, 10 (1): 675. 65–71. ISSN 2301-3567
Full text not available from this repository.Abstract
I developed a model combining the general DMP model and the Skeptical-Infected-Recovery model to analyze how the COVID-19 pandemic has influenced the labor market at the theoretical level. The model implies that both the decrease in infection rate by vaccination and the increase in recovery rate by improvement of health care services can cause turbulence in the labor market. Calibrating the model with data from the USA, I found that the trend of unemployment rate has experienced a slight increase right after the introduction of vaccination at the end of 2020. However, changes in recovery rate by improvement of health care services after infection cannot be accurately found in the current database. My research suggests that governments should propose policy packages to stimulate employment. Households and laborers should lower consumption to encounter the potential risks and costs that the vacancies have brought up to the labor market.