Page 64 - IJPS-11-5

International Journal of
Population Studies Atypical workers and COVID-19

Table 1. Study variables
Variable Obs. Mean Std. Dev. Min Max
1. Dependent variables
Firms that have decreased the number of temporary workers since the outbreak of COVID-19 7,937 0.16 0.37 0 1
Firms that increased the number of temporary workers since the outbreak of COVID-19 7,937 0.04 0.19 0 1
2. Control variables
Firm age 36,060 23.03 16.09 1 203
Manager experience 35,349 21.91 11.70 1 70
Top manager female 36,579 0.17 0.38 0 1
How much of an obstacle: Labor regulations? 36,153 0.14 0.35 0 1
How much of an obstacle: An inadequately educated workforce? 36,033 0.22 0.42 0 1
Adjustment policy: Has this establishment converted its production or services in response to COVID-19? 8,788 0.29 0.45 0 1
Has this establishment received any national or local government measures issued? 8,379 0.37 0.48 0 1
Stringency index 36,579 26.17 17.88 11.11 63.89
Source: Authors’ calculations.

decline in their temporary workforce during COVID-19 the impact of the COVID-19 health crisis on firms did
(Table 2). not contribute to maintaining temporary jobs at pre-
The study results highlight the need for policies crisis levels.
addressing the inadequacy of education and training for This study’s findings have important policy
the workforce, particularly concerning the skills required implications for governments and policymakers. First,
for atypical jobs. Policymakers must consider supporting the positive correlation between converting production
workers in acquiring new skills that will enable them to or services in response to COVID-19 and the level of
adapt to changing labor market demands. Moreover, temporary employment suggests that governments
labor regulations must be reviewed to balance the need should incentivize firms to innovate and adapt to the
for workforce flexibility with employees’ job security. For new economic landscape. This could include providing
small firms, policy measures could reduce the constraints support and resources for firms to develop new business
that direct them to rely on temporary employment, such models and strategies that will enable them to weather
as offering incentives to create more permanent jobs. the effects of the pandemic and offering tax breaks or
Conversely, for medium- and large-sized firms, policies other financial incentives to firms that create new jobs
to increase job security for temporary workers could help or convert their operations to meet new demands. In
mitigate the negative impacts of declining temporary addition, policymakers should consider reforms to labor
employment. market regulations that constrain firms from hiring
One of the most critical findings from the firm size atypical workers, particularly for small firms that are
estimates is related to the adjustment policy brought more likely to rely on temporary employment to maintain
forward by the COVID-19 crisis. The variable “Has this flexibility. Finally, while subsidies may be necessary to
establishment converted its production or services in support firms during times of crisis, this study suggests
response to COVID-19?” is significantly and positively that they may not be effective in maintaining pre-crisis
correlated with both dependent variables, whether for levels of temporary employment. Therefore, policymakers
the increase and/or decrease in temporary employment should consider alternative measures, such as investments
at the firm level during the COVID-19 pandemic. in education and training programs, to help workers
This result confirms the Schumpeterian hypothesis acquire the skills and qualifications needed to secure more
of “destructive creation” insofar as in every crisis, stable, long-term employment.
there is “destruction of businesses, fortunes, products, Similarly, Table 3 presents the estimates when the
and careers, as well as the emergence of new business dependent variable is “Firms that decreased temporary
models and new employment needs, all of which are workers since the outbreak of COVID-19.” The regulation
the price of progress. This is what Joseph Schumpeter of the labor market and the mismatch between education
described as destruction creative” (Iqbal, 2015, p.01). and the firm’s labor force needs are the main factors
The governmental subsidies implemented to mitigate determining the decrease of the temporary labor force

Volume 11 Issue 5 (2025) 58 https://doi.org/10.36922/ijps.3575