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Effects of the COVID‐19 pandemic on the Colombian labour market: Disentangling the effect of sector‐specific mobility restrictions

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  • Leonardo Fabio Morales
  • Leonardo Bonilla‐Mejía
  • Jose Pulido
  • Luz A. Flórez
  • Didier Hermida
  • Karen L. Pulido‐Mahecha
  • Francisco Lasso‐Valderrama

Abstract

We assess the effect of the COVID‐19 pandemic and particularly the sector‐specific mobility restrictions on the Colombian labour market. We exploit the sectoral and temporal variation of the restriction policies to identify their effect. Mobility restrictions significantly reduced employment, accounting for approximately a quarter of the total job loss between February and April of 2020. The remaining three quarters of the job losses could be attributed to the disease's regional patterns and other epidemiological and economic factors affecting the whole country. Therefore, we should expect important employment losses even in the absence of such restrictions. We also assess the effect of restrictions on the intensive margin, finding negative, although smaller effects on the number of hours worked and wages. Most of the employment effect is driven by salaried workers, while self‐employment was more responsive to the disease spread. Finally, we find that women are disproportionally affected: mobility restrictions account for a third of the recent increase of the gender gap in salaried employment. Effets de la pandémie de COVID‐19 sur le marché du travail colombien : analyse des répercussions liées aux restrictions de mobilité par secteur. Dans cet article, nous évaluons les répercussions de la pandémie de COVID‐19, et notamment des restrictions en matière de mobilité propres à chaque secteur, sur le marché du travail colombien. Nous nous appuyons sur les variations temporelles et sectorielles des politiques de restriction pour déterminer leurs effets. Les restrictions de mobilité ont sensiblement détérioré l'emploi en détruisant environ un quart du nombre total d'emplois supprimés entre février et avril 2020, les trois‐quarts restants pouvant être imputés aux caractéristiques régionales de la pandémie ainsi qu'à d'autres facteurs épidémiologiques et économiques touchant l'ensemble du pays. Nous pourrions donc nous attendre à d'importantes destructions d'emplois, même en l'absence de telles restrictions. Nous évaluons également les effets des restrictions à la marge intensive, et nous constatons des effets négatifs mais plus faibles sur le nombre d'heures travaillées ainsi que sur les salaires. Les effets de ces restrictions sur l'emploi sont motivés en grande partie par les travailleurs salariés, les travailleurs indépendants se montrant plus réactifs face à la propagation de la maladie. Enfin, nous constatons que les femmes sont touchées de façon disproportionnée, les restrictions de mobilité comptant pour un tiers de l'accentuation récente de l'écart hommes‐femmes en matière d'emploi salarié.

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  • Leonardo Fabio Morales & Leonardo Bonilla‐Mejía & Jose Pulido & Luz A. Flórez & Didier Hermida & Karen L. Pulido‐Mahecha & Francisco Lasso‐Valderrama, 2022. "Effects of the COVID‐19 pandemic on the Colombian labour market: Disentangling the effect of sector‐specific mobility restrictions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 308-357, February.
  • Handle: RePEc:wly:canjec:v:55:y:2022:i:s1:p:308-357
    DOI: 10.1111/caje.12549
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    1. Jhon James Mora, 2021. "Analysis of Unemployment and Employment After a Strict COVID-19 Confinement Policy in Cali," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 94, pages 165-193, Enero-Jun.
    2. Leonardo Bonilla-Mejía & Mauricio Villamizar-Villegas, 2022. "The Leading Role of Bank Supply Shocks," Borradores de Economia 1205, Banco de la Republica de Colombia.
    3. Leonardo Bonilla-Mejía & Luz A. Florez & Didier Hermida & Francisco Lasso & Leonardo Fabio Morales & Juan Jose Ospina & José Pulido, 2023. "Is the COVID-19 Pandemic Fast-Tracking Automation in Developing Countries? Evidence from Colombia," Journal of Human Capital, University of Chicago Press, vol. 17(4), pages 593-616.
    4. Clotilde Mahe & Sergio Parra-Cely, 2020. "Isolating the incapacitative effect of social distancing on crime: Evidence from Ecuador’s Covid-19 lockdown," DEM Discussion Paper Series 20-23, Department of Economics at the University of Luxembourg.
    5. Cepparulo, Brian & Jump, Robert Calvert, 2022. "The impact of Covid-19 restrictions on economic activity: evidence from the Italian regional system," Greenwich Papers in Political Economy 37801, University of Greenwich, Greenwich Political Economy Research Centre.
    6. Leonardo Bonilla-Mejía & Juan Esteban Carranza & Mariana Fuentes Vélez & Felipe González Esquivel & Stiven Pérez Pulgarín & Mauricio Villamizar-Villegas, 2022. "Covid-19 y consumo de los hogares: hechos estilizados a partir de datos del Grupo Éxito," Chapters, in: Darwin Cortés Cortés & Christian Posso & Mauricio Villamizar-Villegas & Banco de la República & Univ (ed.), Covid-19 consecuencias y desafíos en la economía colombiana. Una mirada desde las universidades, chapter 9, pages 173-192, Banco de la Republica de Colombia.
    7. Grace Armijos-Bravo & Segundo Camino-Mogro, 2023. "Covid-19 Lockdown in Ecuador: Are there Gender Differences in Unemployment?," Journal of Development Studies, Taylor & Francis Journals, vol. 59(6), pages 833-853, June.
    8. Karen García-Rojas & Paula Herrera-Idárraga & Leonardo Fabio Morales & Natalia Ramírez-Bustamante & Ana María Tribín-Uribe, 2020. "(She)cession: The Colombian female staircase fall," Borradores de Economia 1140, Banco de la Republica de Colombia.

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    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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