A new GLO Discussion Paper finds that employees who are under a dual condition of stress, the coronavirus pandemic and the risk of job loss, respond with training efforts.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
GLO Discussion Paper No. 780, 2021
Job Training, Remote Working, and Self-Employment: Displaced Workers Beyond Employment Hysteresis – Download PDF
by Focacci, Chiara Natalie & Santarelli, Enrico
GLO Fellow Enrico Santarelli
Author Abstract: The recent SARS-Cov-2 pandemic has contributed to several corporate crises. As a result, many Small- and Medium-Sized Enterprises (SMEs) in Italy have filed for bankruptcy in the first quarter of 2020. In addition to a gigantic macroeconomic effect, the lockdown has impacted individuals to a large extent. In this article, we investigate the behavioral response of employees who are under a dual condition of stress; namely, the pandemic and the risk of job loss. The hypothesis of employment hysteresis is challenged by looking at the tendency of individuals who are employed in firms facing a crisis, or in difficulty, to participate in training measures for: a similar job, remote working, and self-employment. Findings from a seemingly unrelated regressions (SUR) model show a significant increase in the likelihood to participate in standard or high-commitment training measures for similar jobs and remote working for employees who: i) positively value their professional social capital, i.e. their membership in a trade union (+24.4 and +25.2 percentage points, respectively); ii) have some displaced colleagues (+29.6 and +40.7 percentage points, respectively). Finally, we find that employees with a lower educational background are less likely to consider the possibility of switching between occupations.
GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers). Complete list of all GLO DPs – downloadable for free.