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COVID-19, job loss, and underemployment: who is affected?

Author

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  • Ma. Christina F. Epetia

    (University of the Philippines)

Abstract

This paper seeks to examine the short-term adverse effects of the labor market disruptions caused by the COVID-19 pandemic on employment by estimating and comparing the probability of job loss, underemployment, and employment gain in January, April, and July 2020. Using data from the Philippine Labor Force Survey, we find that the workers who were most vulnerable to job loss and underemployment amid the COVID-19 pandemic are male, less educated, and those working in sectors that are either with limited operational capacity or not allowed to open at all. On a positive note, the results also suggest that males and less-educated individuals are more likely to gain employment after being jobless in the previous quarter. A policy recommendation is to establish an institutionalized social insurance program, such as an unemployment insurance facility, to protect a wider range of workers from the negative shocks to the labor market.

Suggested Citation

  • Ma. Christina F. Epetia, 2021. "COVID-19, job loss, and underemployment: who is affected?," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 58(1 and 2), pages 63-91, June and .
    • Handle: RePEc:phs:prejrn:v:58:y:2021:i:1and2:p:63-91
    as

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    File URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1013/921
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    Cited by:

    1. Amarila, Mark Reniel M. & Abueg, Luisito C., 2022. "Do Philippine Stocks Catch Coronavirus? Some Econometric Check-up on Pandemic Data, 2021-2022," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 8(1), December.

    More about this item

    Keywords

    COVID-19; unemployment; underemployment;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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