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Seminar

From Immediate Disruptions to Lasting Impacts: COVID-19 Infections and Their Effects on Labor Supply and Disability Insurance

  • Series
    Brown Bag Seminars General Economics
  • Speaker
    Benedikt Vogt (CPB)
  • Field
    Empirical Microeconomics
  • Location
    Erasmus University Rotterdam, E building, Kitchen/Lounge E1
    Rotterdam
  • Date and time

    December 12, 2024
    12:00 - 13:00

Abstract

We examine the causal effects of a COVID-19 infection on hours worked and disability insurance (DI) take-up. We link Dutch administrative data on over 3 million individuals’ PCR tests in 2020 to labor market records spanning 2020-2023. Employing an event-study differences-in-differences design, we exploit variation in the timing of infections during the beginning of the pandemic. Our results reveal a 40% immediate decline in hours worked two weeks after infection and a 6% increase in DI take-up two years later. This finding suggests a minimum incidence of 0.23% of severe long COVID among the working-age population infected early in the pandemic.