TY - RPRT AU - Zimpelmann, Christian AU - Gaudecker, Hans-Martin von AU - Holler, Radost AU - Janys, Lena AU - Siflinger, Bettina M. TI - Drivers of Working Hours and Household Income Dynamics during the COVID-19 Pandemic: The Case of the Netherlands PY - 2021/May/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 14382 UR - https://www.iza.org/index.php/publications/dp14382 AB - Using customized panel data spanning the entire year of 2020, we analyze the dynamics of working hours and household income across different stages of the CoVid-19 pandemic. Similar to many other countries, during this period the Netherlands experienced a quick spread of the SARS-CoV-2 virus, adopted a set of fairly strict social distancing measures, gradually reopened, and imposed another lockdown to contain the second wave. We show that socio-economic status is strongly related to changes in working hours, especially when strict economic restrictions are in place. In contrast, household income is equally unaffected for all socio-economic groups. Examining the drivers of these observations, we find that pandemic-specific job characteristics (the ability to work from home and essential worker status) explain most of the socio-economic gradient in total working hours. Furthermore, household income is largely decoupled from shocks to working hours for employees. We provide suggestive evidence that large-scale labor hoarding schemes have helped insure employees against demand shocks to their employees. KW - inequality KW - labor market KW - working from home KW - coronavirus KW - mitigation policies KW - essential workers KW - COVID-19 ER -