Gaps in working-age social risk experience and response to the COVID-19 crisis

Abstract

This study aims to analyze the impact of COVID-19 on the labor market risk of the working-age population and the differences in income, consumption, and policy effects using the Korean Labor Panel Survey, the Regional Employment Survey, and the Household Income and Expenditure Survey. The main findings are as follows. First, non-essential jobs, jobs that can’t work from home, and face-to-face jobs have experienced a large decline in employment since COVID-19. It is necessary to develop new criteria for employment vulnerability due to the epidemic. Second, women with children are at greater risk of quitting jobs or reducing labor supply through paid leave and furloughs due to childcare burdens. It is necessary to establish a social care system during epidemics. Third, there is a need for a proactive government response to mitigate economic shocks of sectors affected by government quarantine measures. Fourth, flexible work options can be a buffer against the risk of job loss, so governments can proactively prepare the legal and institutional environment.