Measuring Remote Labor Index and Supply Shock of the Covid-19 Virus in Iran

Document Type : Original Article

Authors

1 Associate Professor of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

2 Ph.D Candidate in Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

Abstract

The outbreak and spread of the corona virus in the world have caused great suffering and hardship to human society. But this suffering is not limited to disease and mortality and has put the global economy at risk. The shock caused by this virus on the world economy is very significant. Many countries have extensive quarantines and restrictions to curb the virus. Iran has also tried to control the spread of the disease by using social distancing and closing down non-essential jobs. Hence, Corona has been able to cause major economic problems. Therefore, in this study, the remote labor index (RLI) was calculated. Jobs and activities are classified into essential and non-essential. The data of 1397 for jobs and activities from the Statistics Center of Iran have been used, to calculate the supply shock caused by the Corona virus on the economy of Iran. The results show that the total supply shock was equal to 34% and according to the main occupational groups, the highest supply shocks were in the occupational groups of "artisans and related occupations" and "simple workers" with 70% and 62%, respectively.

Keywords

References

- Adams-Prassl, A., Boneva, T., Golin, M. & Rauh, C. (2020). The large and unequal impact of covid-19 on workers. VoxEU.org, 08 April.
- Baldwin, R. & B. Weder di Mauro (2020), Introduction, in R. Baldwin & B. Weder di Mauro, eds, ‘Economics inthe Time of COVID-19. CEPR, London, chapter 1, 1–30.
- Barrot, J. N., Grassi, B., & J. Sauvagnat (2020). Sectoral effects of social distancing. Available at SSRN, COVID Economics, 3:85–102.‏
- Bloom, E., De Wit, V., & Carangal-San Jose, M.J. (2005). Potential economic impact of an avian flu pandemic on Asia.‏ Asian Development Bank, 42, 1-14.
- UNIDO (2020). Coronavirus: The Economic Impact. 07 Apr 2020.https://www.unido.org/stories/coronavirus-economic-impact.
-del Rio-Chanona, R. M., Mealy, P., Pichler, A., Lafond, F., & Farmer, D. (2020). Supply and demand shocks in the COVID-19 pandemic: An industry and occupation perspective. arXiv preprint arXiv:2004.06759.‏
- Dingel, J. & Neiman, B. (2020). How many jobs can be done at home? Becker Friedman Institute white paper No. 26948.
- Guerrieri, V., Lorenzoni, G., Straub, L., & Werning, I. (2020). Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages? Working Paper, No. w26918, National Bureau of Economic Research.
- Inoue, H. & Todo, Y. (2020). The propagation of the economic impact through supply chains: The case of a mega-city lockdown against the spread of COVID-19. Available at SSRN 3564898.
- Khosravi, M., Mehrabi, H, Ahmadian, A. & Jalaei, S. (2018), Simulating the Effects of Macroeconomic Shocks on Agricultural Sector: Dynamic Stochastic General Equilibrium (DSGE) model approach. Iranian Journal of Agricultural Economics and Development Research, 48(4), 573-587 (in Persian).
- McKibbin, W. J., & R. Fernando (2020). The global macroeconomic impacts of COVID-19: Seven scenarios. CAMA Working Paper No. 19/2020.
- OECD (2020). Evaluating the initial impact of covid-19 containmentmeasures on economic activity. OECD Technical Report, March 2020.
- Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: impact on the Global Economy. Available at SSRN 3562570.
-Shojaee, S., Moghadam, A. & Amirkhani, T. (2010). An introduction to the business information network O*NET and its role in regulating the US labor market.Social, Economic, Scientific and Cultural Monthly of Work and Society. Journal of Human Resources, 12, 39-44.
-Snowdon, B. & Howard, V.R. (2005). Modern macroeconomic: Its origins, development and current state. Khalili Araghi, M. and A. Soori (2018), Samt Press (in Persian).
- Sumner, A., Hoy, C., & Ortiz-Juarez, E. (2020). Estimates of the Impact of COVID-19 on Global Poverty. UNU-WIDER, April, 800-9.
- Yazdani, M., Dargahi, H., Nikzad, M. (2017). Evaluating the Output Losses from Currency Crises and the Role of Central Bank in Emerging Economies. Journal of Economics and Modeling, 8(29), 41-65.
- Zhang, S. X., Wang, Y., Rauch, A. & Wei, F. (2020). Health, distress and life satisfaction of people in chinaone month into the covid-19 outbreak. Distress and Life Satisfaction of People in China One Month intothe COVID-19 Outbreak.
Journal of Economics and Modelling
Volume 11, Issue 2 - Serial Number 42
September 2020
Pages 155-180

Files

Share

How to cite

Statistics