IDEAS home Printed from https://ideas.repec.org/p/bdm/wpaper/2022-19.html
   My bibliography  Save this paper

The Impact of the COVID-19 Pandemic on Post-Great Recession Formal Entrants: Evidence from Mexico

Author

Listed:
  • Osuna Gómez Daniel

Abstract

I study the impact of the COVID-19 pandemic on the formal employment of entrants from each post-Great Recession year. Using longitudinal Mexican social security records and an individual fixed-effects difference-in-differences design, I find that the pandemic caused more recent entrants from each post-Great Recession year to lose formal employment at higher rates than other post-Great Recession entrants that joined the formal sector before them. However, the gap in employment narrowed as the economy recovered. The impact was larger for women and workers with less formal work experience in industries with more interpersonal interactions, like hotels and restaurants.

Suggested Citation

  • Osuna Gómez Daniel, 2022. "The Impact of the COVID-19 Pandemic on Post-Great Recession Formal Entrants: Evidence from Mexico," Working Papers 2022-19, Banco de México.
    • Handle: RePEc:bdm:wpaper:2022-19
    as

    Download full text from publisher

    File URL: https://www.banxico.org.mx/publications-and-press/banco-de-mexico-working-papers/%7B3A8556AA-EF96-A359-8902-6C8386EB1FC0%7D.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hannan, Swarnali Ahmed & Honjo, Keiko & Raissi, Mehdi, 2022. "Mexico needs a fiscal twist: Response to Covid-19 and beyond," International Economics, Elsevier, vol. 169(C), pages 175-190.
    2. Benjamin Cowan & Kairon Shayne Garcia, 2021. "How Has Covid-19 Affected Young Workers?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(04), pages 08-14, July.
    3. Ori Heffetz & Daniel Reeves, 2020. "Measuring Unemployment in Crisis: Effects of COVID-19 on Potential Biases in the CPS," NBER Working Papers 28310, National Bureau of Economic Research, Inc.
    4. Leyva Gustavo & Mora Israel, 2021. "How High (Low) are the Possibilities of Teleworking in Mexico?," Working Papers 2021-15, Banco de México.
    5. Hannes Schwandt & Till von Wachter, 2019. "Unlucky Cohorts: Estimating the Long-Term Effects of Entering the Labor Market in a Recession in Large Cross-Sectional Data Sets," Journal of Labor Economics, University of Chicago Press, vol. 37(S1), pages 161-198.
    6. Marco Caliendo & Ricarda Schmidl, 2016. "Youth unemployment and active labor market policies in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    7. Andy Snell & Pedro Martins & Heiko Stüber & Jonathan P. Thomas, 2018. "Bias in Returns to Tenure When Firm Wages and Employment Comove: A Quantitative Assessment and Solution," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 47-74.
    8. Chatterji Pinka & Li Yue, 2023. "Recovery from the COVID-19 Recession: Uneven Effects among Young Workers?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 23(3), pages 821-842, July.
    9. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    10. Raj Chetty & John N. Friedman & Michael Stepner & The Opportunity Insights Team, 2020. "The Economic Impacts of COVID-19: Evidence from a New Public Database Built Using Private Sector Data," NBER Working Papers 27431, National Bureau of Economic Research, Inc.
    11. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-1260, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Osuna-Gomez, Daniel, 2023. "The impact of the COVID-19 pandemic on post-great recession entrants: Evidence from Mexico," Labour Economics, Elsevier, vol. 81(C).
    2. Mark Regan & Barra Roantree, 2021. "Born under a bad sign: the impact of finishing school when labour markets are weak," IFS Working Papers W21/28, Institute for Fiscal Studies.
    3. Naiki, Eriko & Ogane, Yuta, 2021. "Are Japanese Full-time Workers Conservative in Starting New Businesses?," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    4. Kim, Sun Hyung, 2023. "The importance of social skills in recovery from graduating in a recession," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 387-411.
    5. Holtmann, Anne Christine & Ehlert, Martin & Menze, Laura & Solga, Heike, 2021. "Improving Formal Qualifications or Firm Linkages-What Supports Successful School-to-Work Transitions among Low-Achieving School Leavers in Germany?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 37(2), pages 218-237.
    6. Alstadsæter, Annette & Bratsberg, Bernt & Markussen, Simen & Raaum, Oddbjørn & Røed, Knut, 2023. "Social Gradients in Employment during and after the COVID-19 Pandemic," IZA Discussion Papers 16260, Institute of Labor Economics (IZA).
    7. Sutanuka Roy & Sudhir Gupta & Rabee Tourky, 2023. "The Impact of Long–Term Orientation Traits on Pandemic Fatigue Behavior: Evidence from the Columbian Exchange," Journal of Economic Growth, Springer, vol. 28(3), pages 397-438, September.
    8. Jose Garcia-Louzao & Gabriel Burdin, 2023. "Employee Owned Firms and the Careers of Young Workers," Bank of Lithuania Working Paper Series 113, Bank of Lithuania.
    9. Guirong Li & Jiajia Xu & Liying Li & Zhaolei Shi & Hongmei Yi & James Chu & Elena Kardanova & Yanyan Li & Prashant Loyalka & Scott Rozelle, 2020. "The Impacts of Highly Resourced Vocational Schools on Student Outcomes in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(6), pages 125-150, November.
    10. Pritchett, Lant, 2023. "Rely (only) on the rigorous evidence” is bad advice," LSE Research Online Documents on Economics 119818, London School of Economics and Political Science, LSE Library.
    11. Mikel Bedayo & Gabriel Jiménez & José-Luis Peydró & Raquel Vegas, 2020. "Screening and Loan Origination Time: Lending Standards, Loan Defaults and Bank Failures," Working Papers 1215, Barcelona School of Economics.
    12. Jeremy T. Fox, 2010. "Estimating the Employer Switching Costs and Wage Responses of Forward-Looking Engineers," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 357-412, April.
    13. Roxana Elena Manea, 2021. "School Feeding Programmes, Education and Food Security in Rural Malawi," CIES Research Paper series 63-2020, Centre for International Environmental Studies, The Graduate Institute.
    14. Eichengreen, Barry & Aksoy, Cevat Giray & Saka, Orkun, 2021. "Revenge of the experts: Will COVID-19 renew or diminish public trust in science?," Journal of Public Economics, Elsevier, vol. 193(C).
    15. Awaworyi Churchill, Sefa & Smyth, Russell & Trinh, Trong-Anh, 2022. "Energy poverty, temperature and climate change," Energy Economics, Elsevier, vol. 114(C).
    16. Luis R. Martinez & Jonas Jessen & Guo Xu, 2023. "A Glimpse of Freedom: Allied Occupation and Political Resistance in East Germany," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 68-106, January.
    17. Michael E. Martell & Peyton Nash, 2020. "For Love and Money? Earnings and Marriage Among Same-Sex Couples," Journal of Labor Research, Springer, vol. 41(3), pages 260-294, September.
    18. Eleanor Jawon Choi & Jaewoo Choi & Hyelim Son, 2019. "The Long-Term Effects of Labor Market Entry in a Recession: Evidence from the Asian Financial Crisis," Upjohn Working Papers 19-312, W.E. Upjohn Institute for Employment Research.
    19. Labanca, Claudio & Pozzoli, Dario, 2022. "Hours Constraints and Wage Differentials across Firms," IZA Discussion Papers 14992, Institute of Labor Economics (IZA).
    20. Stefano Colonnello & Mariela Dal Borgo, 2024. "Raising Household Leverage: Evidence from Co-Financed Mortgages," Working Papers 2024: 01, Department of Economics, University of Venice "Ca' Foscari".

    More about this item

    Keywords

    COVID-19 Pandemic; Post-Great Recession Entrants; Formal Labor Markets; Tenure;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdm:wpaper:2022-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Subgerencia de desarrollo de sistemas (email available below). General contact details of provider: https://edirc.repec.org/data/bangvmx.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.