Understanding the impact of COVID-19 intervention policies on the hospitality labor market

Arthur Huang; Christos Makridis; Mark Baker; Marcos Medeiros; Zhishan Guo

doi:10.1016/j.ijhm.2020.102660

Understanding the impact of COVID-19 intervention policies on the hospitality labor market

Int J Hosp Manag. 2020 Oct:91:102660. doi: 10.1016/j.ijhm.2020.102660. Epub 2020 Aug 28.

Authors

Arthur Huang¹, Christos Makridis², Mark Baker¹, Marcos Medeiros¹, Zhishan Guo³

Affiliations

¹ Rosen College of Hospitality Management, University of Central Florida, Orlando, FL, 32819, United States.
² Arizona State University, MIT Sloan School of Management, United States.
³ Department of Electrical and Computer Engineering, University of Central Florida, Orlando, FL, 32816, United States.

Abstract

Using new high-frequency data that covers a representative sample of small businesses in the United States, this study investigates the effects of the COVID-19 pandemic and the resulting state policies on the hospitality industry. First, business closure policies are associated with a 20-30% reduction of non-salaried workers in the food/drink and leisure/entertainment sectors during March-April of 2020. Second, business reopening policies play a statistically significant role in slowly reviving the labor market. Third, considerable differences exist in the impact of policies on the labor market by state. Fourth, the rise of new COVID-19 cases on a daily basis is associated with the continued deterioration of the labor market. Lastly, managerial, practical, and economic implications are described.

Keywords: COVID-19; Employment; Hospitality industry; Intervention policy; Labor market.