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Short- and Long-term Impact of COVID-19 on Earnings and Employment in the Metropolitan City

Author

Listed:
  • Sonal Yadav

    (Ahmedabad University)

  • Neha Gadhvi

    (Gujarat University)

  • Jeemol Unni

    (Ahmedabad University)

Abstract

This paper analyses the impact of the various waves of COVID-19 on wages and employment. The government of India announced a strict nationwide lockdown on March 25, 2020, to contain the COVID-19 pandemic. People lost their jobs or faced wage cuts during the lockdown. Globally, women experienced a greater loss in employment and paid working hours than men. To understand the short-term and long-term impact of COVID-19 in Ahmedabad city, we conducted four rounds of surveys, online during March–April 2020 and March–April 2021, and offline in September 2021 and September–October 2022. We found that women and low-skilled workers were more likely to have received a wage cut during the lockdown period. During the pandemic year 2021, less than a tenth of respondents reported changing their jobs, while in the post-pandemic year, 2022, more than a quarter of the respondents reported change in economic activity. The logistic model showed that this churning of jobs post-pandemic was true for low skill and high skill occupations. Further, in the post-pandemic period, there was a shift from wage employment to self-employment, among both low- and high-skilled categories of occupations. Given the varying impact of COVID by gender and occupation, policies must be designed to address vulnerabilities and encourage businesses.

Suggested Citation

  • Sonal Yadav & Neha Gadhvi & Jeemol Unni, 2023. "Short- and Long-term Impact of COVID-19 on Earnings and Employment in the Metropolitan City," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(4), pages 1097-1118, December.
    • Handle: RePEc:spr:ijlaec:v:66:y:2023:i:4:d:10.1007_s41027-024-00469-6
    DOI: 10.1007/s41027-024-00469-6
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    References listed on IDEAS

    as
    1. Ajit K. Ghose, 2020. "The Pandemic, Lockdown and Employment," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(1), pages 67-71, October.
    2. Jeemol Unni, 2020. "Impact of COVID-19 on Informal Economy: The Revival," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(1), pages 113-118, October.
    3. Farzana Afridi & Amrita Dhillon & Sanchari Roy, 2023. "The Gendered Crisis: Livelihoods and Well-Being in India During COVID-19," Feminist Economics, Taylor & Francis Journals, vol. 29(3), pages 40-74, July.
    4. Dang, Hai-Anh H. & Viet Nguyen, Cuong, 2021. "Gender inequality during the COVID-19 pandemic: Income, expenditure, savings, and job loss," World Development, Elsevier, vol. 140(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; Lockdown; Wages; Employment; Gender;
    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
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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