The short-term economic consequences of COVID-19: Occupation tasks and mental health in Canada

In this paper, we study the effect of COVID-19 on the labour market and reported mental health of Canadians. To better understand the effect of the pandemic on the labour market, we build indexes for whether workers: (i) are relatively more exposed to disease, (ii) work in proximity to co-workers, (iii) are essential workers and (iv) can easily work remotely. Our estimates suggest that the impact of COVID-19 was significantly more severe for workers that work in proximity to co-workers and those more exposed to disease who are not in the health sector, while the effects are less severe for essential workers and workers that can work remotely. Last, using the Canadian Perspective Survey Series, we observe that reported mental health is significantly lower among some of the most affected workers such as women and less-educated workers. We also document that those who were absent from work because of COVID-19 are more concerned with meeting their financial obligations and with losing their job than those who continue working outside their home.