In his Policy Brief 11, Michal Burzynski of the Luxembourg Institute for Socio-Economic Research (Liser) points out that white-collar workers have more options and could escape wage losses in the current economic crisis as back-office service-oriented sectors were in better shape. While so-called “blue-collar workers” in sales and low-skilled roles were most vulnerable to economic shocks from the health crisis. These workers have fewer options and were therefore more likely to choose unemployment or accept significant wage reductions compared to white-collar workers.

He added that uniform provision of financial support risked deepening “the distance between workers on the opposite ends of wage distribution.”

A broadening of their skills through subsidised training packages could help close the gap by boosting their job prospects.