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Not All That It Seems: Narrowing of Gender Gaps in Employment during the Onset of COVID-19 in Indonesia

Author

Listed:
  • DANIEL HALIM

    (World Bank, Washington, DC., U.S.A.)

  • SEAN HAMBALI

    (World Bank, Washington, DC., U.S.A.)

  • RIRIN SALWA PURNAMASARI

    (World Bank, Washington, DC., U.S.A.)

Abstract

This paper studies the COVID-19 pandemic’s impact on Indonesia’s labor market, using the exogenous timing of the pandemic in a seasonal difference-in-differences framework. We use multiple rounds of Indonesia’s National Labor Force Survey to establish a pre-pandemic employment trend and attribute any difference from this trend to the estimated effect of the pandemic on employment outcomes. We find mixed impacts of the pandemic on Indonesia’s labor market. While the pandemic has reduced the gender gap in employment participation due to the “added worker effect†among women, it has also lowered overall employment quality among both women and men. The increase in female employment was mainly driven by women in rural areas without a high school education entering either informal agricultural employment or unpaid family work. For men, the pandemic had negative employment impacts for all subgroups. Among the employed, both women and men work fewer hours and earn lower wages.

Suggested Citation

  • Daniel Halim & Sean Hambali & Ririn Salwa Purnamasari, 2023. "Not All That It Seems: Narrowing of Gender Gaps in Employment during the Onset of COVID-19 in Indonesia," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 40(02), pages 5-38, September.
    • Handle: RePEc:wsi:adrxxx:v:40:y:2023:i:02:n:s0116110523400012
    DOI: 10.1142/S0116110523400012
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    More about this item

    Keywords

    COVID-19 pandemic; female employment; Indonesia; informal sector;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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