Working conditions in essential occupations and the role of migrants

Abstract

Following a national lockdown in response to the Covid-19 pandemic, state governments in Germany published lists of “essential” occupations that were considered necessary to maintain basic services such as health care, social care, food production and transport. This paper examines working conditions in these essential occupations and identifies clusters of similar jobs. Differences across clusters are highlighted using detailed data on job characteristics including working conditions, tasks and educational requirements. Two clusters with favourable or average working conditions account for more than three-quarters of jobs in essential occupations. Another two clusters, comprising 20% of jobs in essential occupations, are associated with unfavourable working conditions such as low pay, job insecurity, poor prospects for advancement and low autonomy. These latter clusters exhibit high shares of migrants. An Oaxaca–Blinder decomposition is used to investigate which individual characteristics explain why migrants are more likely to have unfavourable working conditions. The results suggest that lacking proficiency in the host-country language is the main barrier to improving migrants’ working conditions.