Working Paper: CEPR ID: DP15838
Authors: Stefania Albanesi; Jiyeon Kim
Abstract: The economic crisis associated with the emergence of the novel corona virus is unlike standard recessions. Demand for workers in high contact and inflexible service occupations has declined, while parental supply of labor has been reduced by lack of access to reliable child care and in-person schooling options. This has led to a substantial and persistent drop in employment and labor force participation for women, who are typically less affected by recessions than men. We examine real time data on employment, unemployment, labor force participation and gross job flows to document the gendered impact of the pandemic. We also discuss the potential long-term implications of this crisis, including the role of automation in depressing the recovery of employment for the worst hit service occupations.
Keywords: employment; unemployment; labor force participation; gender gaps; covid19
JEL Codes: E24; J16; J21; J22; J23; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| COVID-19 recession (F44) | drop in employment and labor force participation for women (J21) |
| COVID-19 recession (F44) | employment losses for women (J21) |
| high-contact, inflexible occupations (J29) | drop in employment for women (J21) |
| controlling for occupation (J29) | attenuates gender differences in employment losses (J79) |
| COVID-19 recession (F44) | rise in unemployment for women (J64) |
| COVID-19 recession (F44) | rise in nonparticipation for women (J49) |
| drop in women's labor supply (J22) | long-term increases in gender wage gaps (J79) |
| COVID-19 recession (F44) | skill obsolescence during non-participation spells (C41) |