Who can work from home? The roles of job tasks and HRM practices

This paper examines the characteristics of remote work using a unique Japanese survey dataset that provides information on engagement in remote work together with the specific job tasks and human resource management (HRM) characteristics workers face. We show that the opportunity to work remotely was more likely to be available to those engaged in non-routine tasks as well as to workers subject to HRM practices presupposing that worker performance is measurable. The implications of these findings for income transfer policies and management practices in light of the COVID-19 pandemic are also discussed.     

The impact of COVID-19 on employment and income of vocational graduates in China: Evidence from surveys in January and July 2020

The COVID-19 pandemic shocked the economy of China in early 2020. Strict lockdown measures were implemented nationwide to prevent the further spread of the virus. During the lockdown period, many economic activities were affected, which had repercussions for the nation's overall employment. Vocational graduates were among the most affected by the crisis. To estimate the causal effects of COVID-19 on the full-time employment of vocational high school graduates as well as their monthly income and hours worked by week, we exploit variations in the intensity of the pandemic in time and across space using survey data from vocational schools from six provinces in China. The results of the difference-in-differences (DID) estimates indicate that being located in counties with high pandemic intensity significantly reduced both the employment in full-time jobs of vocational graduates as well as their monthly income. Our study's analysis demonstrates that the effects of COVID-19 on the labor market can be attributed to the large-scale contraction of labor demand of the enterprises that were hiring vocational graduates. To cope with this situation, vocational graduates took various measures, including reducing consumption, drawing on their savings, searching for new jobs, taking on part-time jobs, borrowing money, and attending new training programs. In addition, the empirical analysis finds that there were heterogeneous effects with respect to gender, family social capital, the industry in which the vocational graduate was participating, and whether the individual was in a management position.     

Social Assistance Amidst the COVID-19 Epidemic in South Africa: A Policy Assessment

In an attempt to minimise the negative economic impacts of COVID-19 on vulnerable households the South African government allocated R50 billion in additional social assistance spending. The cash transfer package included a temporary increase in existing grants and introduced a new “Covid grant.” We assess the chosen package and compare it with an initial proposal to increase the Child Support Grant (CSG). Coverage, cost and welfare effects are calculated to measure the relative impacts in each case. We find that while a significant increase in the CSG delivers resources most progressively, the addition of the COVID-19 grant may potentially reach a much larger group of otherwise uncovered, vulnerable individuals. Critically, this extended coverage comes at a cost to the poorest households, via additional transfers to the upper income deciles. However, we identify several categories of vulnerable household groups which suggests that the workers most negatively affected by the pandemic are not necessarily those in the poorest households. The paper emphasises that social assistance to mitigate the consequences of COVID-19 should not be viewed necessarily as a standard poverty reduction exercise, but rather as an attempt to mitigate COVID-19-related income shocks for the vulnerable who were most negatively affected by the pandemic.     

Can self-employment activity contribute to ascension to urban citizenship? Evidence from rural-to-urban migrant workers in China

The ascension to urban citizenship and assimilation into urban life for rural to urban migrant workers is a pressing mission during the current process of rapid urbanization in developing China. However, the issue of how self-employed migrants, who account for up to 25 percent of total migrant workers in 2009 (Meng, 2012), acquire urban citizenship remains understudied. Using a unique sample from the 2009 Rural to Urban Migrants in China (RUMiC) survey, this paper explores whether self-employment choice contributes to migrant workers' ascension to urban citizenship and integration, and uncovers the underlying mechanisms. We find that although self-employed migrants are capable of earning a higher income, and improving their living conditions, their tendency to reside permanently in the city is not significantly different from their counterparts of wage workers. We argue that self-employed migrants, who are less covered by urban social securities and are more discriminated against by current urban household registration (Hukou) system, tend to lose faith in ascension to urban citizenship. It implies that a social security system with self-employed migrants being covered as well as an urban Hukou admission system favoring diverse human capital (especially taking into account entrepreneurship) would help accelerate the urbanization process.     

Out of the shadows: Impact of SARS experience on Chinese netizens' willingness to donate for COVID-19 pandemic prevention and control

While charitable donations help to raise funds and contribute to pandemic prevention and control, there are many unanswered questions about how people make such donation decisions, especially in countries like China where charitable donations have played an increasing role in recent years. This study contributes to the literature by assessing the potential impacts of Chinese netizens' experience with the 2002 severe acute respiratory syndrome (SARS) epidemic on their willingness to donate for COVID-19 pandemic prevention and control. Specifically, this study applies a difference-in-differences (DID) model to a dataset collected from a nationwide survey to examine how individuals' exposure to the SARS epidemic affects their willingness to donate to alleviate the COVID-19 pandemic. The results suggest that individuals' SARS epidemic experiences in their early lives, especially during the “childhood-adolescence” period, had a lasting and far-reaching impact on their willingness to donate toward COVID-19 pandemic prevention and control. Also, the impacts were likely heterogeneous by such sociodemographic factors as educational background, health status, and income level. The empirical findings highlight the importance of considering early-life experiences in developing and implementing epidemic prevention and control policies. While the SARS experience likely affected Chinese netizens' willingness to donate toward COVID-19 pandemic prevention and control, lessons learned from both the SARS epidemic and COVID-19 pandemic could be used to develop more effective public health education and prevention programs as well as to increase public donations for future pandemic prevention and control.     

“The better you feel,the harder you fall”: Health perception biases and mental health among Chinese adults during the COVID-19 pandemic

The health risks of the current COVID-19 pandemic, together with the drastic mitigation measures taken in many affected nations, pose an obvious threat to public mental health. To assess predictors of poor mental health in the context of the COVID-19 pandemic, this study first implements survey-based measures of health perception biases among Chinese adults during the pandemic. Then, it analyzes their relation to three mental health outcomes: life satisfaction, happiness, and depression (as measured by the CES−D). We show that the health overconfidence displayed by approximately 30% of the survey respondents is a clear risk factor for mental health problems; it is a statistically significant predictor of depression and low levels of happiness and life satisfaction. We also document that these effects are stronger in regions that experienced higher numbers of confirmed COVID-19 cases and deaths. Our results offer clear guidelines for the implementation of effective interventions to temper health overconfidence, particularly in uncontrollable situations like the COVID-19 pandemic.     

Pandemic and insurance purchase: How do people respond to unprecedented risk and uncertainty?

We investigate how people insure themselves against an upsurge of risk and uncertainty during a pandemic. Using high-frequency, city-level insurance purchases data from the largest online insurance platform in China, we employ difference-in-differences strategies to quantify changes in insurance purchases before and after the COVID-19 outbreak relative to a corresponding period in 2019. We show that the pandemic induces a substantial increase in daily number of insurance purchase, with evident impact on both health and life insurance. We demonstrate that the increase mainly originates from an expanded number of consumers; and is not driven by compositional shifts. Particularly, we show that the observed increase is better explained by pandemic risk exposure than other mechanisms such as negative emotions and insurance awareness. Nevertheless, there is a notable discrepancy between changes in insurance purchases and COVID-19 risk exposure, which is driven by individuals' lack of information on pandemic. We find that the more direct and high-quality information people have, the more likely their decisions are to accord with the objective risk exposure. These findings reveal the key driving forces of the risk management responses under an unprecedented pandemic, and point to the importance and necessity of public information disclosure.     

Impacts of the COVID-19 crisis on single-person households in South Korea

Using nationally representative income and expenditure data from South Korea, we show that single-person households suffered a much greater decrease in household income and expenditure compared to multi-persons households during the COVID-19 pandemic in 2020. Negative effects on income were largest for the single-person households in ages 50—64, mostly driven by decreases in earned income rather than business income. There was no corresponding decrease in consumption expenditures, however, other than on transportation expenditure for young men. Notably, there were significant decreases in non-consumption expenditures that are related to formal and informal consumption-smoothing mechanisms, such as spending on insurances, pensions, and household transfers. Our findings highlight the disproportionately negative effects of the COVID-19 pandemic on the middle-aged single-person households. With reduced spending on consumption-smoothing mechanisms, this group is likely to be even more vulnerable to negative income shocks in the future.     

Changes in women’s empowerment in the household,women’s diet diversity,and their relationship against the background of COVID-19 in southern Bangladesh

The COVID-19 pandemic in Bangladesh, associated public health measures, and people’s reactions were projected to have caused job losses among women, a decline in women’s empowerment and reduced women’s diet diversity. Using a November 2020 telephone survey to re-interview adult female respondents of a November 2019 in-person survey, contrary to expectations we find that more women found than lost jobs, and women’s diet diversity increased over the year partly marked by the COVID-19 pandemic. We did not find evidence of a decline in women’s involvement in food purchase decisions, nor women’s autonomy over use of household income. The change in women’s outside employment is neither statistically related to changes in women’s involvement in food purchase decisions, changes women’s autonomy over use of household income, nor changes in women’s diet diversity. Change in women’s involvement in food purchase decisions is positively related with change in women’s diet diversity and change in women’s autonomy over income use is negatively related with change in women’s diet diversity.     

Sleeplessness in COVID-19 pandemic: Lockdown and anxiety

This paper investigates the sleeplessness in Chinese cities during the coronavirus disease 2019 (COVID-19) pandemic. We provide first evidence of a link from daily COVID-19 cases resulting in sleep loss in a panel of Chinese cities. We use Wuhan, which was the first city to be completely locked down, as basis to present the result that sleeplessness has become a considerably serious issue owing to the COVID-19 pandemic. In using the intervention policy of various cities as exogenous shocks, we find that lockdown policies significantly increase the sleeplessness level of Chinese cities. In addition, the severity of COVID-19 pandemic significantly exacerbates the negative effect of lockdown policies on sleep quality in the city. Overall, this study indicates that policy makers should pay more attention to public mental health when citizens recover from COIVD-19 by investigating the unintended consequences of COVID-19 on sleeplessness level of cities.     

Who suffers from the COVID-19 shocks? Labor market heterogeneity and welfare consequences in Japan

Effects of the COVID-19 shocks in the Japanese labor market vary across workers of different age groups, genders, employment types, education levels, occupations, and industries. We document heterogeneous changes in employment and earnings in response to the COVID-19 shocks, observed in various data sources during the initial months after the onset of the pandemic in Japan. We then feed these shocks into a life-cycle model of heterogeneous agents to quantify welfare consequences of the COVID-19 shocks. In each dimension of the heterogeneity, the shocks are amplified for those who earned less prior to the crisis. Contingent workers are hit harder than regular workers, younger workers than older workers, females than males, and workers engaged in social and non-flexible jobs than those in ordinary and flexible jobs. The most severely hurt by the COVID-19 shocks has been a group of female, contingent, low-skilled workers, engaged in social and non-flexible jobs and without a spouse of a different group.     

Economic and Distributional Impact of COVID-19: Evidence from Macro-Micro Modelling of the South African Economy

A computable general equilibrium model linked to a microsimulation model is applied to assess the potential short-term effects on the South African economy of the ongoing COVID-19 pandemic. With a particular focus on distributional outcomes, two simulations are run, a mild and a severe scenario. The findings show significant evidence of decline in economic growth and employment, with the decline harsher for the severe scenario. The microeconomic results show that the pandemic moves the income distribution curve such that more households fall under the poverty line while at the same time, inequality declines. The latter result is driven by the disproportionate decline in incomes of richer households while the poorest of the poor are cushioned by government social grants that are kept intact during the pandemic. The COVID-19 pandemic is still unfolding and its economic modelling as well as the data used to operationalise the model will need to be updated and improved upon as more information about the disease and the economy becomes available.     

COVID-19 and trade: Simulated asymmetric loss

This paper uses 2018 data as a benchmark to build a numerical 26-country global general equilibrium model with trade cost and an endogenous trade imbalance structure. We assume that COVID-19 will increase the trade cost between countries and decrease labor supply in production. We use China’s trade data from January to April in 2020 to calibrate the influence level parameters and then simulate the trade effects of COVID-19 in China, the EU, the US, and the world. Our simulation results find that all countries’ trade and exports will be significantly hurt by the pandemic. Due to the trade diversion effect and the price growth effect, some countries will see an increase in import trade. Comparatively, the pandemic has the most negative impact on global trade, followed by the EU, the US, and China. As the pandemic deepens, the negative impact on trade will increase. The worldwide pandemic has the most significant impact on US trade, with an effect about 1.5 times that of the average world effect.     

Smaller Real Regional Income Gap than Nominal Income Gap： A Price-adjusted Study

I. IntroductionSince China’s reform and opening-up, its economy has witnessed rapid growth togetherReal Regional Income Gap39 ?2006 The Authors Journal compilation ?2006 Institute of World Economics and Politics, Chinese Academy of Social Sciences with a substantial increase in household income. Sustained rapid economic growth has led to an increasingly larger “pie” for distribution. According to the National Bureau of Statistics of China preliminary estimation indicated that GDP …     

Coming out of the pandemic: What have we learned and what should we learn?

In this editorial, we reviewed the articles collected in the special issue "Economics of Pandemic Disease" along with other relevant literature. We found that the pandemic has had a devastating impact on the economy as a whole and on small and medium-sized enterprises (SMEs) and private firms in particular, which may have deepened the economic inequality and impeded poverty reduction in China. The pandemic also resulted in substantial damage to the mental health and well-being of the Chinese population, with a disproportionate impact on minorities, including the female and the illiterate. We also examined the available evidence regarding the effectiveness of China's policy responses to the COVID-19 pandemic, which suggested that China's zero-Covid policy succeeded in stabilizing its economy and maintaining a safe environment in earlier phases of the pandemic, but hardly achieved a balance between disease control and economic growth in the later stage when less fatal but more transmissive coronavirus variants emerged. Lastly, we discussed policy options that China may take to protect the health of its people and avoid a potentially substantial loss of lives during the transition toward the post-pandemic new normal, which include prioritizing the timely administration of effective vaccines among the elderly and vulnerable populations, improving public communications regarding when and how to seek medical help, and strengthening the surge capacity of the healthcare systems, especially in less developed regions.     

The impact of the COVID-19 pandemic on global GDP growth

This paper describes one of the first attempts to gauge the effect of the COVID-19 pandemic on the global trajectory of real GDP over the course of 2020 and 2021. It is also among the first efforts to distinguish between the role of domestic variables and global trade in transmitting the economic effects of COVID-19. We estimate panel data regressions of the quarterly growth in real GDP on pandemic variables for 90 countries over the period 2020 Q1 through 2021 Q4. We find that readings on the number of COVID-19 deaths had a very small effect in our aggregate sample. On the other hand, changes in the stringency of the lockdown measures taken by governments to restrict the spread of the virus were an important influence on GDP. The economic effects of the pandemic differed between rich and poor countries: COVID-19 deaths exerted a somewhat greater drag on GDP in advanced economies, although this difference was not statistically significant, whereas lockdown restrictions were more injurious to economic activity in emerging and developing economies. In addition to these domestic pandemic effects, global trade represented a significant channel through which the economic effects of the pandemic spilled across national borders. This finding underscores how globalization makes each country vulnerable not only to medical contagion from the COVID-19 pandemic, but to economic contagion as well.     

The social scar of the pandemic: Impacts of COVID-19 exposure on interpersonal trust

This paper employs a difference-in-differences strategy to examine the causal effect of exposure to the COVID-19 pandemic on interpersonal trust amidst zero-COVID policies in China. Using a nationally representative panel survey, we find that COVID-19 exposure leads to a decrease in the levels of generalized trust. We also show that the change in interpersonal trust varies across domains. Specifically, COVID-19 exposure significantly decreases trust in parents, neighbors, and local government officials, but has small and insignificant effects on trust in doctors, strangers, and Americans. Empirical tests suggest that changes in income and physical health status are not likely to be potential channels. We provide some evidence for the mechanism of deteriorated mental health status and pessimistic expectations.     

How the COVID-19 pandemic affects job sentiments of rural teachers

This study investigates how the COVID-19 pandemic has affected teachers' job-specific stresses and their enthusiasm for the teaching occupation. We use unique data from China that cover the periods before and after the start of the pandemic and apply various estimation methods. We find that, among rural young teachers, the pandemic has caused higher teaching stress and career development stress and has reduced passion toward the teaching occupation. We investigate the working channels of the pandemic, including changes in job-related activities and social network. After controlling for possible working channels, the COVID-19 pandemic still shows a strong direct impact on job sentiments.     

Compensating for academic loss: Online learning and student performance during the COVID-19 pandemic

The COVID-19 pandemic has led to widespread school shutdowns, with many continuing distance education via online-learning platforms. We here estimate the causal effects of online education on student exam performance using administrative data from Chinese Middle Schools. Taking a difference-in-differences approach, we find that receiving online education during the COVID-19 lockdown improved student academic results by 0.22 of a standard deviation, relative to pupils without learning support from their school. Not all online education was equal: students who were given recorded online lessons from external higher-quality teachers had higher exam scores than those whose lessons were recorded by teachers from their own school. The educational benefits of distance learning were the same for rural and urban students, but the exam performance of students who used a computer for online education was better than those who used a smartphone. Last, while everyone except the very-best students performed better with online learning, it was low achievers who benefited from teacher quality.     

COVID-19 and the intentions to migrate from developing countries: Evidence from online search activities in Southeast Asia

COVID-19 has had an enormous effect on labor markets globally. Economic restrictions, notably strict border controls and lockdowns, have led many workers to lose their jobs and forced many migrants to return to their homes or change their migration plans. While adverse effects on labor mobility are expected, variations in the prevalence of COVID-19 and governmental responses to the pandemic across countries are likely to influence workers’ intentions to migrate in different ways. To understand the effects of pandemics on the international labor supply, we explore the impact of COVID-19 and the various economic restriction policies on job search behavior by considering cases from Southeast Asian countries using the difference-in-differences (DID) approach with data from Google Trends Index (GTI). We find that the search volume of queries related to the labor market dramatically increased over time following the outbreak of COVID-19. However, we do not observe any positive impact on the search volume related to emigration, regardless of the infection control measures in the host countries. Our results imply that the job insecurity increases after the imposition of lockdown in the respective countries. On the other hand, the expectation to migrate outside of the country, which requires preparation time and incurs high costs, does not seem to have increased in developing countries.