Abstract

Background/Objectives: This study analyzed the impact of COVID-19 on the labor income of workers in 16 regions by comparing the time periods of COVID-19 inexperience(2017 2018) and COVID-19 experience(2019 2020). In addition, this study examined the impact of COVID-19 by dividing wage workers and self-employed workers by region one year after the spread of COVID-19.
 Methods: This study used data from the Korea Labor Panel Survey of the Korea Labor Institute. Data on individual labor status by year were reconstructed using Korea Labor Panel data from 2017 to 2020. In this study, the impact of COVID-19 on workers' wages in different regions was empirically verified using a time-wise difference-in-difference methodology, with the period before COVID-19 established as the control group.
 Results: The analysis revealed that after the outbreak of COVID- 19, the monthly wages of the employees increased in all provinces except Daegu, indicating that the shock period of COVID-19 is entering a recovery phase. However, for self-employed workers, monthly wages decreased in regions such as Seoul, Incheon, and Gangwon.
 Conclusion/Implications: The findings reveal that COVID-19 impacts self-employed workers more than contracted employees. Despite the loss compensation policy for the self-employed since 2021, economic difficulties for the self-employed, including debt problems, remain. Therefore, policy support, including financial and tax benefits, are needed in regions with many small business owners are.

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