Export collapse and employment effects during the Covid-19 crisis in Mexico

Abstract

We study the employment effects of the collapse of Mexican exports to the USA due to the Covid-19 crisis and its recovery. The employment outcomes are broken down by gender and skill, which enables the investigation to assess how these employment categories were affected. The article finds that 33.6% of all the jobs lost at the height of the Covid-19 pandemic in Mexico were exclusively due to the collapse of exports to the USA. Trade collapse was biased against female and unskilled workers, although all the jobs lost were re-gained during the recovery, being again biased against female workers. Gender-responsive policies are needed to ensure an inclusive recovery and resilience against future trade shocks.