COVID-19: how much unemployment was caused by the shutdown in Germany?. Issue 12 (12th July 2021)

• Record Type: Journal Article
• Authors: Bauer, Anja; Weber, Enzo
• Is Part Of: Applied economics letters. Volume 28:Issue 12(2021)
• Page Start: 1053
• Page End: 1058
• Publication Date: 2021-07-12
• Subjects: COVID-19 -- treatment effect -- unemployment; J6 -- E24; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2020.1789544
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: This paper evaluates the short-term labour market impact of the COVID-19 containment measures in Germany. By assessing the treatment effect on unemployment via difference-in-difference estimation, we find that 60% of the considerably increased inflows from employment into unemployment in April 2020 were due to the shutdown measures. Disentangling further, we find that the hiring margin accounted for additional 82% of the unemployment effect coming from the separations margin. In sum, the shutdown measures increased unemployment in the short run by 117, 000 persons.