The effects of individual and collective labor market status on employment and earnings during the COVID-19 crisis

Abstract Based on a unique longitudinal survey conducted between April 2020 and April 2021 in Israel, this study estimated the effect of labor market status during the outbreak of COVID-19 on continuity of employment, worktime and earnings throughout the crisis. Labor market status has both an individual dimension (the type of employment contract) and a collective one (membership in a trade union or coverage by a collective agreement). Findings from curvilinear growth models show that those whose labor market status was more precarious, characterized by deviations from the standard employment relationship and the absence of collective representation and voice, fared less well than those whose labor market status was more secure. At the same time, evidence suggests a negotiated compromise whereby workers with collective representation enjoyed greater employment security but also experienced greater earnings reductions than their counterparts who remained employed but had no collective representation.