Hit Harder, Recover Slower? Unequal Employment Effects of the Covid-19 Shock

18 Pages Posted: 21 Oct 2021

See all articles by Sang Yoon (Tim) Lee

Sang Yoon (Tim) Lee

Queen Mary University of London

minsung park

Washington University in St. Louis

Yongseok Shin

Washington University in St. Louis

Multiple version iconThere are 2 versions of this paper

Date Written: October, 2021

Abstract

The destructive economic impact of the COVID-19 pandemic was distributed unequally across the population. A worker's gender, race and ethnicity, age, education, industry, and occupation all mattered. We analyze the initial negative effect and its lingering effect through the recovery phase, across demographic and socioeconomic groups. The initial negative impact on employment was larger for women, minorities, the less educated, and the young whether or not we account for the industries and occupations they worked in. By February 2021, however, the differential effects across groups had gotten much smaller overall and had entirely vanished once the different industries and occupations they work in are taken into account. In particular, the differential effects between men and women vanished with or without the industry and occupation compositions taken into account, indicating that women's progress in the labor market over the past decades has not been wiped out by the pandemic. Across race and ethnicity, Hispanics and Asians were the worse hit but made up most of the lost ground, while the initial impact on Blacks was smaller but their recovery was slower.

Keywords: COVID-19, unemployment, gender, race, ethnicity, age, education, occupation

JEL Classification: J21, J15, J16

Suggested Citation

Lee, Sang Yoon (Tim) and park, minsung and Shin, Yongseok, Hit Harder, Recover Slower? Unequal Employment Effects of the Covid-19 Shock (October, 2021). Available at SSRN: https://ssrn.com/abstract=3946809 or http://dx.doi.org/10.20955/r.103.367-83

Sang Yoon (Tim) Lee (Contact Author)

Queen Mary University of London ( email )

Mile End Road
London, London E1 4NS
United Kingdom

Minsung Park

Washington University in St. Louis ( email )

Yongseok Shin

Washington University in St. Louis

One Brookings Drive
Campus Box 1208
Saint Louis, MO 63130-4899
United States

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