Animal spirits at play?: firm sentiments and labour demand during the COVID-19 pandemic

Fuente: Organización Internacional del Trabajo (OIT)
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Autor principal: Bolaji Ridwan Bello (Author)
Formato: Artículo científico
Publicado: International Labour Organization 2024
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author Bolaji Ridwan Bello (Author)
author_facet Bolaji Ridwan Bello (Author)
Bolaji Ridwan Bello (Author)
contents Animal spirits at play?: firm sentiments and labour demand during the COVID-19 pandemic Bolaji Ridwan Bello (Author) Economists have long theorized that sentiments, or spontaneous beliefs that are unjustified by economic fundamentals, are a driver of economic behaviours. In this study, I explore whether such sentiments influenced firms’ behaviours during the COVID-19 outbreak. Using a sample of Italian firms, I observe that in the immediate aftermath of the outbreak, firms’ expectations about post-COVID economic recovery largely reflected beliefs unexplained by firms’ COVID-related experiences. Then, I find that these beliefs were associated with firms' labour market behaviours. Firms that displayed more pessimistic beliefs were more likely to implement cost-cutting labour market measures such as dismissing employees and reducing work hours. 10.1111/ilr.12438 DOI https://doi.org/10.1111/ilr.12438 publication.journalArticle
format Artículo científico
id ilo_995648977102676
institution Organización Internacional del Trabajo (OIT)
publishDate 2024
publisher International Labour Organization
spellingShingle Animal spirits at play?: firm sentiments and labour demand during the COVID-19 pandemic
Bolaji Ridwan Bello (Author)
Animal spirits at play?: firm sentiments and labour demand during the COVID-19 pandemic Bolaji Ridwan Bello (Author) Economists have long theorized that sentiments, or spontaneous beliefs that are unjustified by economic fundamentals, are a driver of economic behaviours. In this study, I explore whether such sentiments influenced firms’ behaviours during the COVID-19 outbreak. Using a sample of Italian firms, I observe that in the immediate aftermath of the outbreak, firms’ expectations about post-COVID economic recovery largely reflected beliefs unexplained by firms’ COVID-related experiences. Then, I find that these beliefs were associated with firms' labour market behaviours. Firms that displayed more pessimistic beliefs were more likely to implement cost-cutting labour market measures such as dismissing employees and reducing work hours. 10.1111/ilr.12438 DOI https://doi.org/10.1111/ilr.12438 publication.journalArticle
title Animal spirits at play?: firm sentiments and labour demand during the COVID-19 pandemic
url https://researchrepository.ilo.org/esploro/outputs/journalArticle/Animal-spirits-at-play-firm-sentiments/995648977102676