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Unintended Consequences of Lockdowns: Evidence from Domestic Helpers in Urban China

Author

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  • Xiaobo He

    (School of Business, Shanghai University of International Business and Economics, Shanghai 201620, China; The Centre for Global Food and Resources, The University of Adelaide, Adelaide, South Australia 5005, Australia)

  • Fang Xiao

    (School of Business, Shanghai University of International Business and Economics, Shanghai 201620, China)

Abstract

This paper addresses the reactions of domestic helpers to the Wuhan (Hubei Province) lockdown that began on January 23, 2020. We use a novel dataset containing the information of over 40,000 Chinese domestic helpers registered on a leading professional website from November 2019 to June 2020. The results indicate a declining pattern of short-term labor supply of domestic helpers across 11 major Chinese cities, which shows an increase in the expected monthly wage of domestic helpers in these cities. More importantly, using a difference-in-difference (DID) model, this paper provides some evidence on the existence of labor market discrimination against domestic helpers born in Hubei Province due to employers¡¯ fear of infection.

Suggested Citation

  • Xiaobo He & Fang Xiao, 2020. "Unintended Consequences of Lockdowns: Evidence from Domestic Helpers in Urban China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 15(4), pages 521-540, December.
  • Handle: RePEc:fec:journl:v:15:y:2020:i:4:p:521-540
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-011-020-0022-0
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    More about this item

    Keywords

    2019 novel coronavirus disease (COVID-19); pandemic; domestic helpers; urban; China; labor supply; expected wage; labor market; discrimination;
    All these keywords.

    JEL classification:

    • 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
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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