Regional Coronavirus Hotspots During the COVID-19 Outbreak in the Netherlands

We explore the impact of COVID-19 hotspots and regional lockdowns on the Dutch labour market during the outbreak of COVID-19. Using weekly administrative panel microdata for 50 per cent of Dutch employees until the end of March 2020, we study whether individual labour market outcomes, as measured by employment, working hours and hourly wages, were more strongly affected in provinces where COVID-19 confirmed cases, hospitalizations and mortality were relatively high. The evidence suggests that labour market outcomes were negatively affected in all regions and local higher virus case numbers did not reinforce this decline. This suggests that preventive health measures should be at the regional level, isolating hotspots from low-risk areas.