Effects of the COVID-19 Recession on the US Labor Market: Occupation, Family, and Gender

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 impact of the pandemic by occupation, gender and family status. 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.

The impact of the COVID-19 recession on Mexican households: evidence from employment and time use for men, women, and children

“…Unlike previous recessions, the COVID-19 pandemic has been uniquely devastating to women (Albanesi and Kim, 2021 , Alon et al, 2020a , b , Croda and Grossbard, 2021 , Pitts, 2021 ). Part of the disproportionate burden on women is attributable to the impact of the pandemic on the service sector, which typically employs more women than men (Alon et al, 2020b ).…”

The Unequal Effect of the COVID-19 Pandemic on the Labour Market and Income Inequality in China: A Multisectoral CGE Model Analysis Coupled with a Micro-Simulation Approach

“…Owing to the employment structure of different sectors, the COVID-19 pandemic may have an unequal impact on the employment and earnings of different labourers. Several studies have found that labourers who are older, have a low level of education, non-regular employees, and female would suffer greater losses [10][11][12][13][14][15][16]. Thus, the first research hypothesis of the study is that the COVID-19 pandemic would have an unequal impact on the labour market.…”

COVID-19 and Domestic Violence: Economics or Isolation?

“…The effect of unemployment on domestic violence is theoretically ambiguous and has many potential channels. Unemployment can create family stress, which leads to more violence; additionally, household bargaining theory predicts that a sharp increase in female unemployment and a mild increase in male unemployment, as was the case in 2020 (Albanesi & Kim, 2021 ), would increase domestic violence due to a relative shift in economic bargaining power towards men. However, theories of male backlash and instrumental violence predict that female unemployment would lead to less domestic violence.…”