a. COVID-19 and telework b. STATA program was used c. Information was condensed to fit one-pag

Ahmad, Nasir

English

Cleveland-Marshall College of Law

Cleveland State University EngagedScholarship@CSU Digital Student Showcase Spring 2021 Digital CSU Student Showcase 4-2021 The impact of remote workers on unemployment during the COVID pandemic Nasir Ahmad Follow this and additional works at: https://engagedscholarship.csuohio.edu/student_showcase_spring2021 How does access to this work benefit you? Let us know!       Research Question:  Model:  𝑈𝐸𝑖𝑡 = 𝛼0 + 𝛾1𝑅𝑒𝑚𝑜𝑡𝑒𝑤𝑜𝑟𝑘𝑖 + 𝛾2𝑅𝑎𝑐𝑒𝑖 + 𝛾3𝐺𝑒𝑛𝑑𝑒𝑟𝑖 +                                𝛾4𝐸𝑑𝑢𝑐𝑖 + 𝛾4𝐴𝑔𝑒𝑖 + 𝑢𝑖  • What is the impact of remote workers on the probability of being unemployment? • The traditional standard of unemployment (UE) is first used then an unemployment measure based on inability to work to due to COVID-19 • UE equals 1 if individual is unemployed, UE equals 0 if otherwise • Race, Gender, Education, and Age are control variables that may affect an individual’s probability of becoming unemployed • Remotework is the variable of interest while u is the random error term   Literature Review: • Brynjolfsson & Horton found that between February and March of 2020, over one third of the labor force switched to remote work resulting in about half of American workers now working from home • Fairlie, Couch, & Xu find that unemployment rates rose faster for Latin-Americans than for Blacks or Whites in April 2020 • Gezici’s regressions conclude that Black and Hispanic women still experience a significantly higher probability of losing their jobs, even when employed in industries with highly teleworkable jobs            Results: The marginal effects results show remote workers to have a decreased probability of being unemployed by 4.8 percentage points in May19, however, they have an even lower likelihood of being unemployed at 22.6 percentage points one year later.  When we use covidunemploy, the probability of remote workers being unemployed decreases by 30 percentage points!  Still yet, there are winners and losers during the pandemic.  We observe African-Americans in May20 to have an increased probability of being unemployed by 2.8 percentage points – compared to Whites.  But when covidunemploy is taken into account, we see their probability of being unemployed is increased by only 1.6 percentage points.  We also observe Hispanics to have insignificant results in May19 which means they did not experience any negative impact.  However, in May20 we see Hispanics have an increased likelihood of being unemployed by 2.2 percentage points – compared to Whites which is in line with existing research.  We encourage future research to examine the COVID-19 pandemic’s impact on various socioeconomic classes in hopes of better understanding the triggers of unemployment.       Nasir Ahmad  ECN 428 Spri ng 21 The impact of remote workers on unemployment during the COVID pandemic  Caption:  The tables show the marginal effects from probit regression results for both unemployment and covidunemploy.  Regression results were achieved by a merged dataset of CPS (Current Population Survey) microdata and ONET.  The unemployed dependent variable for May19 and May20 (two   top graphs) were taken from the survey and numbered 39,332 and 39,490 individuals, respectively.  The two years are nearly equal due to the fact that more people reported being retired from work in May19 and then more experienced workers reported being unemployed in May20.  The covidunemploy dependent variable is used in May20 with 14,051 individuals reported being unable to work due to the COVID-19 pandemic.  White people are used as the reference category for race and individuals with a high school diploma of less are used as for education.  Average effect is described with standard error and significance noted.         

The impact of remote workers on unemployment during the COVID pandemic

https://engagedscholarship.csuohio.edu/cgi/viewcontent.cgi?article=1011&amp;context=student_showcase_spring2021

The impact of remote workers on unemployment during the COVID pandemic

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