Professors Pedro Brinca and João Duarte, alongside FED investigator Miguel Ferreira-e-Castro have developed a model to measure labour demand and supply shocks during the outbreak of the Covid-19 pandemic, focusing on data from the months of April and May (The Great Lockdown).
Results show that a a significnt extent of the shock in labour working hours (about 2/3 of the total effect) can be attributed to supply side effects. A cross-sectional analysis reveals different sizes in the shocks according to sector.
