The Impact of the COVID-19 Recession on Mexican Households: Evidence from Employment and Time Use for Men, Women, and Children

Abstract

This study examines changes in labor supply, income, and time allocation during the COVID-19 pandemic in Mexico. Using an event-study design, we show that the COVID-19 recession had severe negative consequences for Mexican households. In the first month of the pandemic, employment declined by 17 percentage points. Men recovered their employment faster than women, where men's employment approaches original levels by 2021Q2. Women, on the other hand, experienced persistent employment losses. Within-household, men also increased their time spent on household chores while neither gender (persistently) increased their time caring for others. Instead, children reduced their time spent on schoolwork by 25 percent.

Keywords: Women; Children; COVID-19; Mexico; Labor Supply; Gender; Recession; Household Time Use

JEL Classification: J12, J13, J16, J18, O12