Influence of the COVID-19 pandemic on reducing the income of workers

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Abstract

In Vietnam, the impact of COVID-19 on the economy is also huge, the economy was severely affected with the gross domestic product (GDP) growth at the lowest level in a decade, and most important industries saw a decline in growth, employment, and growing income is seriously affected (Dat, 2020). The COVID-19 pandemic has been affecting many aspects of the economy and society; many enterprises, business households, and cooperatives had to suspend operations, reduce production scale or rotate production, directly affecting the income of employees. This article uses the employment survey data of the General Statistics Office in 2021 and uses labor law (National Assembly, 2019) to analyze the influence of the COVID-19 pandemic on reducing the income of workers in Vietnam. The model estimation results show that the influence of the COVID-19 pandemic on income reduction does not differ between male and female workers, and has a strong influence on the group without professional and technical qualifications. Based on the findings, several suggestions are proposed to improve workers’ income in the context of COVID-19.

Keywords: COVID-19, Income, Reduce Income, Employee, Vietnam

Authors’ individual contribution: Conceptualization — D.T.T.; Methodology — V.H.P. and D.T.T.; Resources — D.T.T.; Writing — Review & Editing — V.H.P.; Visualization — V.H.P.; Funding Acquisition — D.T.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: E24, E64, J40, J31, K31

Received: 04.08.2022
Accepted: 29.03.2023
Published online: 31.03.2023

How to cite this paper: Do, T. T., & Pham, V. H. (2023). Influence of the COVID-19 pandemic on reducing the income of workers. Corporate Governance and Organizational Behavior Review, 7(2), 138–146. https://doi.org/10.22495/cgobrv7i2p12