DETERMINANTS OF JOB LOSS AND WAGE REDUCTION DURING THE COVID-19 PANDEMIC

Abstract

Social distancing measures aimed at containing Covid-19 have affected the labor market, resulting in the closure of several companies or a reduction in their activities. In this context, this study analyzes the determinants of job loss and wage reduction during the Covid-19 pandemic. To do so, the probit model with selection bias correction was employed, using data from the Continuous PNAD 2019 and the PNAD COVID19. The results indicate that individuals without education, women, older individuals (aged between 55 and 65 years), and those residing in the North or Northeast regions were more likely to become unemployed during the pandemic. Those with higher levels of education were more likely to have their salaries reduced. On the other hand, younger workers (aged 14 to 24), those living in the North or Northeast regions, individuals who work remotely and/or have more than one job are less likely to have their salaries reduced during the pandemic.