Page 63 - IJPS-11-5

International Journal of
Population Studies Atypical workers and COVID-19

we mobilize the variable “Since the outbreak of COVID-19, FTWFS =α +α ln age( )
has the number of temporary workers increased, remained i,j,t 1 2 i,j,t
the same, or decreased?” This approach allows us to capture +α 3 ln experience manager( ) i,j,t
firms that have decreased/increased their atypical jobs. For 8
this purpose, we will create two binary variables: (1) Firms +α 3 Top manager female i,j,t +α k ∑ X k,i,j,t + u i,j,t
that increased temporary workers and (2) Firms that k=4
decreased temporary workers. Both variables are equal to 1 with : u i,j,t =α i +η j + λ t +ε i,j,t (1)
if the firm belongs to one of the two categories; otherwise,
they equal 0. Where FTWFS is the firm’s temporary labor force status
captured by the two binary variables: first, firms that
To control for our model, we mobilize variables on decreased temporary workers since the outbreak of
firm-specific characteristics (size, age, gender of top COVID-19; second, firms that increased the number of
manager, etc.) and other control variables that provide temporary workers since the outbreak of COVID-19. Our
information on the obstacles firms face, particularly model is controlled by a set of variables on firm-specific
concerning labor market regulations and the adequacy characteristics (the logarithm of the firm’s age, the
of education and workforce needs. We use two variables: manager’s experience, and the gender of the firm’s top
(1) How Much of an Obstacle: Labor Regulations? manager: Female = 1 female and male = 0) and variables
(2) How Much of an Obstacle: Inadequately Educated related to the firm’s environment X . These are equal to
k
Workforce? k = 5 variables presented in Table 1. The indexes i, j, and t
We mobilize other variables that inform whether the are the firm, the sector, and the time. η , α , and λ are,
i
t
j
firm has implemented an adjustment policy captured respectively, the fixed effect of the sectors, the specific
by the variable “Has this establishment converted its individual effect for each firm, and the temporal effect,
production or services in response to COVID-19?” This respectively. Our database comprises data collected during
approach allows us to capture the differences in measures three follow-up rounds, each assessing the firms’ situations
following three successive waves of COVID-19. ε is the
implemented to cope with the COVID-19 pandemic and error term.
other variables that may affect the likelihood that a firm will
reduce or increase its contingent workforce. Introducing 3. Results
this variable is intended to test the “Schumpeterian
hypothesis” of creative destructiveness, according to which Tables 1 and 2 present the estimates of a dynamic logit
the conversion of the production technique could cause model when the variables quantify the variation in atypical
the loss of jobs of those who could not adapt to the change employment at the firm level. These variables are as follows:
caused by the COVID-19 crisis. “Firms that increased the number of temporary workers since the
outbreak of COVID-19” and “Firms that decreased the number
In addition, our study uses variables indicating of temporary workers since the outbreak of COVID-19.”
whether each firm received support from national or local
government measures and includes a stringency index 3.1. The impact of COVID-19 on atypical jobs by firm
to capture the degree of measures implemented in each size
country to address COVID-19. A descriptive analysis Our results indicate that an inadequately educated
of our data showed that only 4% of firms in our sample workforce and labor regulations are the main factors that
increased their temporary workforce compared to 16% of thwart the increase in atypical employment levels at the
firms that reduced their temporary workforce, indicating firm level during the COVID-19 pandemic. A statistically
how vulnerable the COVID-19 health crisis has impacted significant effect of the variable inadequacy between
jobs. training and the needs of the companies in terms of
temporary workforce was found. Furthermore, results
2.3. Empirical model
by firm size show that small firms significantly increased
Our study focuses on modeling the binary variable “Since their temporary workforce during the COVID-19
the outbreak of COVID-19, has the number of temporary pandemic. This situation can be explained by the fact
workers increased, remained the same, or decreased?” The that this firm category is constrained by labor market
firms in our sample were surveyed during three rounds after regulations regarding typical jobs, which directs firms to
three waves of COVID-19. The econometric specification this temporary employment that guarantees workforce
of our dynamic logit model on the microeconomic data of flexibility for the firm but at the expense of job security.
12,193 firms is as follows: However, medium- and large-sized firms experienced a

Volume 11 Issue 5 (2025) 57 https://doi.org/10.36922/ijps.3575