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The Effect of COVID-19 as an Economic Shock on the Gender and Ethnic Gap in Labour Market Outcomes

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  • Stefani Milovanska-Farrington

Abstract

With more than 29 million confirmed cases of COVID-19 in the USA and 119 million cases worldwide, the pandemic has affected companies, households and the global economy. We explore the effect of the economic shock which resulted from this specific health event on labour market outcomes, and the changes in labour market disparities between ethnic groups and genders. The results provide evidence of an adverse effect of COVID-19 on labour market outcomes of all demographic groups, a widening gap between the employment prospects of minorities and whites, but no change in the earnings gaps between ethnic groups. We also do not find a deterioration of the differentials between genders, except the increase in the difference in the duration of unemployment between women and men with children. The findings have implications related to the priorities of policy decision-makers when implementing policies to combat ethnic and gender gaps in the labour market. JEL Classification: J70, J71, J01, J15, J23

Suggested Citation

  • Stefani Milovanska-Farrington, 2021. "The Effect of COVID-19 as an Economic Shock on the Gender and Ethnic Gap in Labour Market Outcomes," Studies in Microeconomics, , vol. 9(2), pages 227-255, December.
    • Handle: RePEc:sae:miceco:v:9:y:2021:i:2:p:227-255
    DOI: 10.1177/23210222211046411
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    More about this item

    Keywords

    Labour market; ethnic disparities; gender disparities; inequality; economic shock;
    All these keywords.

    JEL classification:

    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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