Short-Term Effects of COVID-19 on Wages: Empirical Evidence and Underlying Mechanisms
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arXiv
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| Format: | Preprint |
| Publié: |
2025
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| _version_ | 1866910911614156800 |
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| author | Wu, Bo |
| author_facet | Wu, Bo |
| contents | This study investigates the causal relationship between the COVID-19 pandemic and wage levels, aiming to provide a quantified assessment of the impact. While no significant evidence is found for long-term effects, the analysis reveals a statistically significant positive influence on wages in the short term, particularly within a one-year horizon. Contrary to common expectations, the results suggest that COVID-19 may have led to short-run wage increases. Several potential mechanisms are proposed to explain this counterintuitive outcome. The findings remain robust when controlling for other macroeconomic indicators such as GDP, considered here as a proxy for aggregate demand. The paper also addresses issues of external validity in the concluding section. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2504_10554 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Short-Term Effects of COVID-19 on Wages: Empirical Evidence and Underlying Mechanisms Wu, Bo General Economics Economics General Finance This study investigates the causal relationship between the COVID-19 pandemic and wage levels, aiming to provide a quantified assessment of the impact. While no significant evidence is found for long-term effects, the analysis reveals a statistically significant positive influence on wages in the short term, particularly within a one-year horizon. Contrary to common expectations, the results suggest that COVID-19 may have led to short-run wage increases. Several potential mechanisms are proposed to explain this counterintuitive outcome. The findings remain robust when controlling for other macroeconomic indicators such as GDP, considered here as a proxy for aggregate demand. The paper also addresses issues of external validity in the concluding section. |
| title | Short-Term Effects of COVID-19 on Wages: Empirical Evidence and Underlying Mechanisms |
| topic | General Economics Economics General Finance |
| url | https://arxiv.org/abs/2504.10554 |