@TechReport{iza:izadps:dp14382, author={Zimpelmann, Christian and Gaudecker, Hans-Martin von and Holler, Radost and Janys, Lena and Siflinger, Bettina M.}, title={Drivers of Working Hours and Household Income Dynamics during the COVID-19 Pandemic: The Case of the Netherlands}, year={2021}, month={May}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={14382}, url={https://www.iza.org/publications/dp14382}, abstract={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.}, keywords={inequality;labor market;working from home;coronavirus;mitigation policies;essential workers;COVID-19}, }