Arbeitspapier

Long Social Distancing

More than ten percent of Americans with recent work experience say they will continue social distancing after the COVID-19 pandemic ends, and another 45 percent will do so in limited ways. We uncover this Long Social Distancing phenomenon in our monthly Survey of Working Arrangements and Attitudes. It is more common among older persons, women, the less educated, those who earn less, and in occupations and industries that require many face-to-face encounters. People who intend to continue social distancing have lower labor force participation – unconditionally, and conditional on demographics and other controls. Regression models that relate outcomes to intentions imply that Long Social Distancing reduced participation by 2.5 percentage points in the first half of 2022. Separate self- assessed causal effects imply a reduction of 2.0 percentage points. The impact on the earnings-weighted participation rate is smaller at about 1.4 percentage points. This drag on participation reduces potential output by nearly one percent and shrinks the college wage premium. Economic reasoning and evidence suggest that Long Social Distancing and its effects will persist for many months or years.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 15644

Classification
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Labor Force and Employment, Size, and Structure
Time Allocation and Labor Supply
Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
Consumer Economics: Empirical Analysis
Subject
social distancing
infection worries
pandemic
labor force participation
potential output
college wage premium
self- assessed causal effects
COVID-19

Event
Geistige Schöpfung
(who)
Barrero, Jose Maria
Bloom, Nicholas
Davis, Steven J.
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2022

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Barrero, Jose Maria
  • Bloom, Nicholas
  • Davis, Steven J.
  • Institute of Labor Economics (IZA)

Time of origin

  • 2022

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