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The Heterogeneous Labor Market Impacts of the Covid-19 Pandemic

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  • Guido Matias Cortes

    (York University)

  • Eliza C. Forsythe

    (University of Illinois, Urbana-Champaign)

Abstract

We study the distributional consequences of the Covid-19 pandemic’s impacts on employment. Using CPS data on stocks and flows, we show that the pandemic has exacerbated pre-existing inequalities. Although employment losses have been widespread, they have been substantially larger in lower-paying occupations and industries. Individuals from disadvantaged groups, such as Hispanics, younger workers, those with lower levels of education, and women, have suffered both larger increases in job losses and larger decreases in hiring rates. Occupational and industry affiliation can explain only part of the increased job losses among these groups.

Suggested Citation

  • Guido Matias Cortes & Eliza C. Forsythe, 2020. "The Heterogeneous Labor Market Impacts of the Covid-19 Pandemic," Upjohn Working Papers 20-327, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:20-327
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    More about this item

    Keywords

    Covid-19; CPS; job losses; occupations; industries; distributional impacts;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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