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Does digitalization help employment stability during the COVID-19 pandemic?: Evidence from Korean survey data APEC, ICT economy

Author Seongman Moon Series 21-01 Language English Date 2021.10.20

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This paper investigates if workers’ ICT use intensity helps to improve their labor market outcomes in the early stage of the COVID-19 pandemic using real-time survey data produced in Korea. We first find that the impacts of the pandemic on labor market outcomes are different across workers’ socio-economic characteristics and industries where they are employed: workers in service or construction industries, temporary workers, and workers who had experienced unemployment before the pandemic are more likely to be unemployed, be furloughed, work less hours, and have earnings reduced in the early stage of the pandemic. We measure workers’ ICT use intensity by weekly computer, mobile, and internet usage hours and find that workers who belong to a group with high ICT use intensity tend to mitigate the adverse effects of the pandemic on their labor market outcomes, while controlling for skill-fixed, industry-fixed, and region-fixed effects as well as for individual characteristics.
Executive Summary

I. Introduction

Ⅱ. Related Literature

Ⅲ. Real-Time Survey Data
3.1. Survey Design
3.2. Summary Statistics

Ⅳ. Empirical Models
4.1. A Model for Different Impacts of COVID-19
4.2. Models for the Role of Digitalization

V. Heterogeneous Impacts of COVID-19

VI. Workers’ ICT Use and Impacts of COVID-19
6.1. ICT Use Intensity
6.2. ICT Skills
6.3. Internet Activities

VII. Policy Implications and Concluding Remarks

References

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