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COVID-19: a crisis of the female self-employed

Author

Listed:
  • Daniel Graeber

    (DIW Berlin, University of Potsdam)

  • Alexander S. Kritikos

    (DIW Berlin, University of Potsdam)

  • Johannes Seebauer

    (DIW Berlin, Freie Universität Berlin)

Abstract

We investigate how the economic consequences of the pandemic, and of the government-mandated measures to contain its spread, affect the self-employed – particularly women – in Germany. For our analysis, we use representative, real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that among the self-employed, who generally face a higher likelihood of income losses due to COVID-19 than employees, women are 35% more likely to experience income losses than their male counterparts. Conversely, we do not find a comparable gender gap among employees. Our results further suggest that the gender gap among the self-employed is largely explained by the fact that women disproportionately work in industries that are more severely affected by the COVID-19 pandemic. Our analysis of potential mechanisms reveals that women are significantly more likely to be impacted by government-imposed restrictions, i.e. the regulation of opening hours. We conclude that future policy measures intending to mitigate the consequences of such shocks should account for this considerable variation in economic hardship.

Suggested Citation

  • Daniel Graeber & Alexander S. Kritikos & Johannes Seebauer, 2021. "COVID-19: a crisis of the female self-employed," CEPA Discussion Papers 27, Center for Economic Policy Analysis.
  • Handle: RePEc:pot:cepadp:27
    DOI: 10.25932/publishup-49810
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    6. Block, Joern & Kritikos, Alexander S. & Priem, Maximilian & Stiel, Caroline, 2022. "Emergency-aid for self-employed in the Covid-19 pandemic: A flash in the pan?," Journal of Economic Psychology, Elsevier, vol. 93(C).
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    10. Marco Caliendo & Daniel Graeber & Alexander S. Kritikos & Johannes Seebauer, 2023. "Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed," Entrepreneurship Theory and Practice, , vol. 47(3), pages 788-830, May.
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    21. Panayiota Lyssiotou & Ruzica Savcic, 2022. "Parents' Time Allocation in Different Phases of the Covid-19 Pandemic: Evidence from the UK and Implications for Gender Equality," University of Cyprus Working Papers in Economics 03-2022, University of Cyprus Department of Economics.
    22. Scott, Douglas & Freund, Richard & Favara, Marta & Porter, Catherine & Sanchez, Alan, 2021. "Unpacking the Post-lockdown Employment Recovery of Young Women in the Global South," IZA Discussion Papers 14829, Institute of Labor Economics (IZA).
    23. Alejandra Rodríguez Sánchez & Anette Fasang & Susan Harkness, 2021. "Gender division of housework during the COVID-19 pandemic: Temporary shocks or durable change?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 45(43), pages 1297-1316.
    24. Benedikt Janzen & Doina Maria Radulescu, 2021. "Effects of Covid-19 Related Government Response Stringency and Support Policies: Evidence from European Firms," CESifo Working Paper Series 9116, CESifo.
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    More about this item

    Keywords

    self-employed; COVID-19; income; gender; representative real-time survey data; decomposition methods;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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