Sustainability in times of crisis: Female employment during COVID‐19

Abstract

In periods of crisis, companies face a financial reality that forces them to decide whether to maintain their commitment to sustainability or prioritize their financial returns. The study of what happened during the COVID‐19 pandemic is vital, given the hard blow it has implied for business and, consequently, for employment. Thus, this paper seeks to determine whether the business commitment to sustainability policies focused on employment and gender diversity translates into concrete results. In a sample of 1761 multinationals (8963 observations) during the 2015–2020 period, we found that the pandemic has harmed employment at the microeconomic level. However, this impact is moderated by the level of responsibility that companies have with their workers. Therefore, the most sustainable companies have been more reluctant to reduce their workforce and even more so when they are women. These results help to position sustainability performance as a way to achieve gender equality at the business level.

The COVID-19, a crossroads for female directors

“…Previous literature has highlighted how the COVID-19 pandemic has affected women’s employment (Blundell et al ., 2020; Dang and Nguyen, 2021; Desai et al ., 2021; Huang et al ., 2022; Nieuwenhuis and Yerkes, 2021; Oreffice and Quintana-Domeque, 2021; Sarker, 2021; Uribe-Bohorquez and García Sánchez, 2023a; Witteveen, 2020; Zamarro and Prados, 2021) to the point of being considered a “shecession” or “femcession” (Holpuch, 2020; Peck, 2020).…”

The effect of COVID‐19 on employment: A bibliometric review of a she‐cession

“…A similar situation has also been observed in the work of Alon et al (2022) for the case of Germany. Along these lines, the work of Uribe‐Bohorquez and García‐Sánchez (2023 ) confirms the effectiveness of gender equality policies in the labor restructuring process, highlighting globally that the most sustainable companies have made greater efforts to avoid layoffs among their employees and, especially, to eliminate gender biases in the affected groups.…”

“…This examination could shed light on the potential regression of women to traditional gender roles, assuming an abandonment of their professional and personal development. Aligned with the insights from Uribe‐Bohorquez and García‐Sánchez (2023), future research could delve into whether policies promoting labor sustainability and non‐discrimination against women have served as catalysts in advancing the cause of gender equality. This exploration could involve observing and comparing monthly dismissal indicators for male and female workers throughout the pandemic.…”

“…This theory argues that female unemployment cannot be understood simply as an economic phenomenon but must be considered as a consequence of social and power precepts that perpetuate gender inequality. There are studies that attribute higher rates of temporary suspensions, reductions in working hours and female unemployment to causes in the private sphere (Lombardo & León, 2014; Uribe‐Bohorquez & García‐Sánchez, 2023). These studies have highlighted how gender‐specific responsibilities and challenges—such as childcare, household activities and gender bias in social norms and expectations—can negatively affect women's development and stability in the workplace.…”