IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/27132.html
   My bibliography  Save this paper

Determinants of Disparities in Covid-19 Job Losses

Author

Listed:
  • Laura Montenovo
  • Xuan Jiang
  • Felipe Lozano Rojas
  • Ian M. Schmutte
  • Kosali I. Simon
  • Bruce A. Weinberg
  • Coady Wing

Abstract

We make several contributions to understanding the socio-demographic divide in early labor market responses to the U.S. COVID-19 epidemic and its policies, benchmarked against two previous recessions. First, monthly Current Population Survey (CPS) data show greater declines in employment in April and May 2020 (relative to February) for Hispanics, younger workers, and those with high school degrees and some college. Between April and May, all the demographic subgroups considered regained some employment. Re-employment in May was broadly proportional to the employment drop that occurred through April, except for Blacks who experienced a smaller rebound. Further, we show that compared to the 2001 recession and the Great Recession, employment losses in the early COVID-19 recession were smaller for groups with very low or very high (vs. medium) education. Second, we show that job loss was larger in occupations that require more interpersonal contact and that cannot be performed remotely. Third, we find pre-COVID-19 sorting of workers into occupations and industries along demographic lines can explain a sizeable portion of the gender, race, and ethnic gaps in new unemployment. For example, while women did suffer more job losses than men, their disproportionate pre-epidemic sorting into remote work compatible occupations shielded women from what would have been even larger employment losses during the epidemic. However, there remain substantial gaps in employment losses across groups that cannot be explained by socio-economic differences. We find some larger gaps in labor market impacts when we consider the “employed but absent from work” measure present in the CPS, in addition to the more traditional employment and unemployment measures. We conclude with a discussion of policy lessons and future research needs implied by the disparities in early labor market losses from the COVID-19 crisis.

Suggested Citation

  • Laura Montenovo & Xuan Jiang & Felipe Lozano Rojas & Ian M. Schmutte & Kosali I. Simon & Bruce A. Weinberg & Coady Wing, 2020. "Determinants of Disparities in Covid-19 Job Losses," NBER Working Papers 27132, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:27132
    Note: HC HE LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w27132.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Coibion, Olivier & Gorodnichenko, Yuriy & Weber, Michael, 2020. "Labor Markets During the Covid-19 Crisis: A Preliminary View," Department of Economics, Working Paper Series qt7rx7t91p, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Thuy D. Nguyen & Sumedha Gupta & Martin Andersen & Ana Bento & Kosali I. Simon & Coady Wing, 2020. "Impacts of State Reopening Policy on Human Mobility," NBER Working Papers 27235, National Bureau of Economic Research, Inc.
    3. Forsythe, Eliza & Kahn, Lisa B. & Lange, Fabian & Wiczer, David, 2020. "Labor demand in the time of COVID-19: Evidence from vacancy postings and UI claims," Journal of Public Economics, Elsevier, vol. 189(C).
    4. Dingel, Jonathan I. & Neiman, Brent, 2020. "How many jobs can be done at home?," Journal of Public Economics, Elsevier, vol. 189(C).
    5. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, vol. 96(2), pages 189-194, May.
    6. Adams-Prassl, A. & Boneva, T. & Golin, M & Rauh, C., 2020. "Inequality in the Impact of the Coronavirus Shock: New Survey Evidence for the UK," Cambridge Working Papers in Economics 2023, Faculty of Economics, University of Cambridge.
    7. Veronica Guerrieri & Guido Lorenzoni & Ludwig Straub & Iván Werning, 2022. "Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages?," American Economic Review, American Economic Association, vol. 112(5), pages 1437-1474, May.
    8. Titan Alon & Matthias Doepke & Jane Olmstead-Rumsey & Michèle Tertilt, 2020. "The Impact of COVID-19 on Gender Equality," CRC TR 224 Discussion Paper Series crctr224_2020_163, University of Bonn and University of Mannheim, Germany.
    9. Sumedha Gupta & Thuy D. Nguyen & Felipe Lozano Rojas & Shyam Raman & Byungkyu Lee & Ana Bento & Kosali I. Simon & Coady Wing, 2020. "Tracking Public and Private Responses to the COVID-19 Epidemic: Evidence from State and Local Government Actions," NBER Working Papers 27027, National Bureau of Economic Research, Inc.
    10. repec:fip:l00001:87739 is not listed on IDEAS
    11. Jonathan I. Dingel & Christina Patterson & Joseph Vavra, 2020. "Childcare Obligations Will Constrain Many Workers When Reopening the US Economy," Working Papers 2020-46, Becker Friedman Institute for Research In Economics.
    12. Felipe Lozano Rojas & Xuan Jiang & Laura Montenovo & Kosali I. Simon & Bruce A. Weinberg & Coady Wing, 2020. "Is the Cure Worse than the Problem Itself? Immediate Labor Market Effects of COVID-19 Case Rates and School Closures in the U.S," NBER Working Papers 27127, National Bureau of Economic Research, Inc.
    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. Wei Cheng & Patrick Carlin & Joanna Carroll & Sumedha Gupta & Felipe Lozano Rojas & Laura Montenovo & Thuy D. Nguyen & Ian M. Schmutte & Olga Scrivner & Kosali I. Simon & Coady Wing & Bruce Weinberg, 2020. "Back to Business and (Re)employing Workers? Labor Market Activity During State COVID-19 Reopenings," NBER Working Papers 27419, National Bureau of Economic Research, Inc.
    2. Sumedha Gupta & Laura Montenovo & Thuy D. Nguyen & Felipe Lozano Rojas & Ian M. Schmutte & Kosali I. Simon & Bruce A. Weinberg & Coady Wing, 2020. "Effects of Social Distancing Policy on Labor Market Outcomes," NBER Working Papers 27280, National Bureau of Economic Research, Inc.
    3. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    4. Kong, Edward & Prinz, Daniel, 2020. "Disentangling policy effects using proxy data: Which shutdown policies affected unemployment during the COVID-19 pandemic?," Journal of Public Economics, Elsevier, vol. 189(C).
    5. Sumedha Gupta & Kosali I. Simon & Coady Wing, 2020. "Mandated and Voluntary Social Distancing During The COVID-19 Epidemic: A Review," NBER Working Papers 28139, National Bureau of Economic Research, Inc.
    6. Alexander Bick & Adam Blandin, 2020. "The Labor Market Impact of a Pandemic: Validation and Application of a Do-It-Yourself CPS," Working Papers 2031, Federal Reserve Bank of Dallas.
    7. Guven, Cahit & Sotirakopoulos, Panagiotis & Ulker, Aydogan, 2020. "Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey," GLO Discussion Paper Series 635, Global Labor Organization (GLO).
    8. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    9. Leslie, Emily & Wilson, Riley, 2020. "Sheltering in place and domestic violence: Evidence from calls for service during COVID-19," Journal of Public Economics, Elsevier, vol. 189(C).
    10. Guido Matias Cortes & Eliza C. Forsythe, 2020. "The Heterogeneous Labor Market Impacts of the Covid-19 Pandemic," Upjohn Working Papers 20-327, W.E. Upjohn Institute for Employment Research.
    11. Hensvik, Lena & Le Barbanchon, Thomas & Rathelot, Roland, 2021. "Job search during the COVID-19 crisis," Journal of Public Economics, Elsevier, vol. 194(C).
    12. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2020. "Inequality in the impact of the coronavirus shock: Evidence from real time surveys," Journal of Public Economics, Elsevier, vol. 189(C).
    13. Miriam Marcén & Marina Morales, 2021. "The intensity of COVID‐19 nonpharmaceutical interventions and labor market outcomes in the public sector," Journal of Regional Science, Wiley Blackwell, vol. 61(4), pages 775-798, September.
    14. Louis‐Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2022. "The short‐term economic consequences of COVID‐19: Occupation tasks and mental health in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 214-247, February.
    15. Daniel Graeber & Alexander S. Kritikos & Johannes Seebauer, 2021. "COVID-19: a crisis of the female self-employed," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(4), pages 1141-1187, October.
    16. Goolsbee, Austan & Syverson, Chad, 2021. "Fear, lockdown, and diversion: Comparing drivers of pandemic economic decline 2020," Journal of Public Economics, Elsevier, vol. 193(C).
    17. Anand Chopra & Michael B. Devereux & Amartya Lahiri, 2022. "Pandemics through the lens of occupations," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 540-580, February.
    18. Cortes, Guido Matias & Forsythe, Eliza, 2021. "The heterogenous labour market impact of the COVID-19 pandemic," CLEF Working Paper Series 40, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    19. Lea Immel & Florian Neumeier & Andreas Peichl, 2022. "The Unequal Consequences of the Covid‐19 Pandemic: Evidence from a Large Representative German Population Survey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(2), pages 471-496, June.
    20. Simionescu, Mihaela & Raišienė, Agota Giedrė, 2021. "A bridge between sentiment indicators: What does Google Trends tell us about COVID-19 pandemic and employment expectations in the EU new member states?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J0 - Labor and Demographic Economics - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

    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:nbr:nberwo:27132. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    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: (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.