How Covid-19 affected labor income in Serbia? An exploration of gender, education, the possibility to work from home, and the employment sector differences
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Abstract
This paper investigates the impact of Covid-19 on labor income changes of employees in Serbia. The research was conducted on a representative sample of 3,044 individuals using the CATI method in Serbia. Employees' labor income was recorded by collecting data on wages before and nine months after the onset of the Covid-19 pandemic. To obtain the difference, we calculated the percentage change in labor income. There was no significant gender difference in the percentage change of income, while there was a difference regarding education level. Employees with primary education experienced an average percentage increase in salary of 7.6%. The analysis revealed a significant interaction between gender and education, indicating that men with primary education had an average increase of 12.8%. Our results showed that employees who could not perform their job from home had an average percentage increase of 2.9% in labor income. The employment sector also had an effect on percentage changes in salary. The construction and agriculture, forestry, and fishery sectors had an average percentage labor income increase of 12.6% and 11.5%, respectively, while employees in the sector of other service activities experienced an average percentage decrease of 7.9%. In conclusion, this study sheds light on the diverse effects of the Covid-19 pandemic on labor income, emphasizing the importance of considering gender, education, remote work possibilities, and the employment sector.
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References
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Zimpelmann, C., von Gaudecker, H-M., Holler, R., Janys, L., & Siflinger, B. (2021). Hours and income dynamics during the Covid-19 pandemic: The case of the Netherlands. Labour Economics, 73, Article 102055. https://doi.org/10.1016/j.labeco.2021.102055
Arndt, C., Davies, R., Gabriel, S., Harris, L., Makrelov, K., Robinson, S., Levy, S., Simbanegavi, W., van Dirk, S., & Anderson, L. (2020). Covid-19 lockdowns, income distribution, and food security: An analysis for South Africa. Global Food Security, 26, Article 100410. https://doi.org/10.1016/j.gfs.2020.100410
Azcona, G., Bhatt, A., Encarnacion, J., Plazaola-Castaño, J., Seck, P., Staab, S., & Turquet, L. (2020). UN Women. From insights to action: Gender equality in the wake of Covid-19. Available at: https://www.unwomen.org/en/digital-library/publications/2020/09/gender-equality-in-the-wake-of-covid-19
Bahn, K., Cohen, J., & Meulen Rodgers, Y. (2020). A feminist perspective on COVID‐19 and the value of care work globally. Gender, Work & Organization, 27(5), 695–699. https://doi.org/10.1111/gwao.12459
Vladisavljević, M., Lebedinski, L., Banović, J., & Vukmirović, V. (2021). Effects of the COVID-19 Pandemic on the Labour Market and the Position of Vulnerable Groups in Serbia. Institute of Economic Sciences. (Research Project INEQ RS COVID-19 No. 7552225).
Barbour, N., Menon, N., & Mannering, F. (2021). A statistical assessment of work-from-home participation during different stages of the COVID-19 pandemic. Transportation Research Interdisciplinary Perspectives, 11, Article 100441. https://doi.org/10.1016/j.trip.2021.100441
Belot, M., Choi, S., Tripodi, E., van den Broek-Altenburg, E., Jamison, J.C., & Papageorge, N.W. (2020). Unequal consequences of Covid-19 across age and income: Representative evidence from six countries. Review of the Economics of the Household, 19, 769-783. https://doi.org/10.1007/s11150-021-09560-z
Bonacini, L., Gallo, G., & Scicchitano, S. (2021). Working from home and income inequality: risks of a “new normal” with COVID-19. Journal of Population Economics, 34, 303-360. https://doi.org/10.1007/s00148-020-00800-7
Bradaš, S., Reljanović, M., & Sekulović, I. (2020). The Impact of the Covid-19 Epidemic on the Position and Rights of Workers in Serbia - With Particular Reference to Frontline and Informal Economy Workers and Multiply Affected Worker Categories. United Nations Human Rights & Center for Democracy Foundation (CDF). Available at:
https://serbia.un.org/sites/default/files/2021-02/Labour%20analiza_ENG_web.pdf
Carta, F., & De Philippis, M. (2021). The impact of the COVID-19 shock on labour income inequality: Evidence from Italy. Banca d'Italia: Questioni di Economia e Finanza (Occasional Papers). Available at: https://www.bancaditalia.it/pubblicazioni/qef/2021-0606/QEF_606_21.pdf?language_id=1
Dang, H-A. H, & Nguyen, C. V. (2021). Gender inequality during the COVID-19 pandemic: Income, expenditure, savings, and job loss. World Development, 140, Article 105269. https://doi.org/10.1016/j.worlddev.2020.105296
Darvas, Z. (2021). The unequal inequality impact of the COVID-19 pandemic. Bruegel Working Paper, 2021/06. Bruegel, Brussels.
Đukanović, B., Radović-Marković, M., Macanović, N., & Maksimović, A. (2022). Economic and Social Advantages and Limitations of Working from Home in Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia. IPSI Bgd TIR, 18(2). Available at: http://ipsitransactions.org/journals/papers/tir/2022jul/p2.php
Gama, A., Alves, J., Costa, D., Laires, P.A., Soares, P., Pedro, A.R., Moniz, M., Solinho, L., Nunes, C., & Dias, S. (2021). Double jeopardy from the COVID-19 pandemic: risk of exposure and income loss in Portugal. International Journal for Equity in Health 20, Article 231. https://doi.org/10.1186/s12939-021-01569-1
Hertz, R., Mattes, J., & Shook, A. (2020). When Paid Work Invades the Family: Single Mothers in the COVID-19 Pandemic. Journal of Family Issues, 42 (9), 2019-2045. https://doi.org/10.1177/0192513X20961420
Hupkau, C., & Petrongolo, B. (2020). Work, Care and Gender during the COVID-19 Crisis. Fiscal Studies, 41(3), 623–651. https://doi.org/10.1111/1475-5890.12245
International Labour Organization (ILO). (2018). Care work and care jobs for the future of decent work. Available at: https://www.ilo.org/global/publications/books/WCMS_633135/lang--en/index.htm
International Labour Organization (ILO). (2020). ILO Monitor: COVID-19 and the world of work. Third edition: Updated estimates and analysis. Available at: http://oit.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/briefingnote/wcms_743146.pdf
International Labour Organization (ILO). (2020). Women in Business and Management: Understanding a gender pay gap. Available at: https://www.ilo.org/actemp/publications/WCMS_735949/lang--en/index.htm
Kristal, T., & Yaish, M. (2020). Does the coronavirus pandemic level the gender inequality curve? (It doesn’t). Research in Social Stratification and Mobility, 68, Article 100520. https://doi.org/10.1016/j.rssm.2020.100520
Midões, C., & Seré, M. (2022). Living with Reduced Income: An Analysis of Household Financial Vulnerability Under COVID-19. Social Indicator Research, 161, 125–149.
OECD Library. Impact of COVID-19 in Serbia. Available at: https://www.oecd-ilibrary.org/sites/5eda65dd-en/index.html?itemId=/content/component/5eda65dd-en
Okubo, T. (2020). Spread of COVID-19 and telework: Evidence from Japan. Covid economics vetted and real-time papers. Centre for Economic Policy Research, 32, 1-25.
Palomino, J.C., Rodríguez, J.G., & Sebastián, R. (2020). Wage inequality and poverty effects of lockdown and social distancing in Europe. European Economic Review, 129, Article 103564. https://doi.org/10.1016/j.euroecorev.2020.103564
Paragraph Lex. (2019). Minimalna zarada u 2019. godini Republika Srbija. Available at: https://www.paragraf.rs/statistika/arhiva-minimalna_zarada.html#2019
Paragraph Lex. (2020). Minimalna zarada u 2020. Godini Republika Srbija. Available at: https://www.paragraf.rs/statistika/arhiva-minimalna_zarada.html#2020
Pew Research Center. (2018). The Changing Profile of Unmarried Parents. Retrieved from: https://www.pewresearch.org/social-trends/2018/04/25/the-changing-profile-of-unmarried-parents
Piyapromdee, S., & Spittal, P. (2020). The Income and Consumption Effects of COVID-19 and the Role of Public Policy. Fiscal Studies. 41(4), 805–827.
http://doi.org/10.1111/1475-5890.12252
Popović-Pantić, S., Semenčenko, D., & Vasilić, N. (2020). Women Entrepreneurship in the Time of COVID-19 Pandemic: The case of Serbia. Journal Women's Entrepreneurship and Education, 3-4, 23-40. https://doi.org/10.28934/jwee20.34.pp23-40
Qian, Y., & Fan, W. (2020). Who loses income during the COVID-19 outbreak? Evidence from China. Research in Social Stratification and Mobility, 68, Article 100522. https://doi.org/10.1016/j.rssm.2020.100522
Radivojević, A. (2020). Highlight 2. Tourism Sector in the Republic of Serbia During the Covid 19 Pandemic. Quarterly Monitor No. 61, April–June 2020, FREN. Available at: https://fren.org.rs/wp-content/uploads/2020/10/Highlight-2.-Tourism-Sector-in-the-Republic-of-Serbia-During-the-Covid-19-Pandemic.pdf
Stanojević, N., & Kotlica, S. (2021). Socio-Economic Response to Coronavirus Challenges: Comparative Study of Serbia and the Selected European Countries In International Organizations and States’ Response to COVID-19, 243–260. https://doi.org/10.18485/iipe_response2covid19.2021.ch14
Statistical Office of the Republic of Serbia (SORS). (2019a). Average salaries and wages per employee, February 2019. Available at: https://publikacije.stat.gov.rs/G2019/PdfE/G20191105.pdf
Statistical Office of the Republic of Serbia (SORS). (2019b). Average salaries and wages per employee, May 2019. Available at: https://publikacije.stat.gov.rs/G2019/PdfE/G20191202.pdf
Statistical Office of the Republic of Serbia (SORS). (2020a). Average salaries and wages per employee, February 2020. Available at: https://publikacije.stat.gov.rs/G2020/PdfE/G20201099.pdf
Statistical Office of the Republic of Serbia (SORS). (2020b). Average salaries and wages per employee, May 2020. Available at: https://publikacije.stat.gov.rs/G2020/PdfE/G20201199.pdf
Statistical Office of the Republic of Serbia (SORS). (2021). Trends, Quarter IV of 2020. Available at: https://www.stat.gov.rs/en-US/publikacije/publication/?p=12946
Statistical Office of the Republic of Serbia (SORS). (2022). Labour Force Survey in the Republic Of Serbia, 2021. Available at: https://publikacije.stat.gov.rs/G2022/PdfE/G20225682.pdf
The Government of the Republic of Serbia. (2020). Measures of the state of emergency. Available at: https://www.srbija.gov.rs/vest/en/151422/measures-of-the-state-of-emergency.php
Udovički, K., & Medić, P. (2021). Uticaj COVID-19 krize na zaposlenost: Fokus na ranjive kategorije [The Impact of the COVID-19 Crisis on Employment: A Focus on Vulnerable Categories], Social Inclusion and Poverty Reduction Unit. Available at: https://socijalnoukljucivanje.gov.rs/wp-content/uploads/2021/01/Uticaj_COVID-19_krize_na_zaposlenost.pdf
World Health Organization (WHO). (2020). Timeline: WHO's COVID-19 response. Available at: https://www.who.int/emergencies/diseases/novel-coronavirus-2019/interactive-timeline
Yang, E., Kim, Y., & Hong, S. (2021). "Does working from home work? Experience of working from home and the value of hybrid workplace post-COVID-19", Journal of Corporate Real Estate, 25 (1), 50-76. https://doi.org/10.1108/JCRE-04-2021-0015
Zimpelmann, C., von Gaudecker, H-M., Holler, R., Janys, L., & Siflinger, B. (2021). Hours and income dynamics during the Covid-19 pandemic: The case of the Netherlands. Labour Economics, 73, Article 102055. https://doi.org/10.1016/j.labeco.2021.102055