This pandemic recession has disproportionately affected women
In the United States, women’s unemployment increased by 12.8 percentage points between February and April 2020, versus an increase of only 9.9 percentage points for men. This is attributed to two reasons: a) the lockdown triggered recession affected sectors of the economy where female employment is predominant; and b) the lack of childcare, as schools and day care centers were closed, prevented many women from working.
In this paper, Alon and al., address the issue of whether the experience of this pandemic recession can lead to changes in gender inequality that long outlast the pandemic itself. They develop a macroeconomic model that can account for the distinct features of regular and pandemic recessions and find that:
- In the immediate aftermath of the recession, the gender wage gap is bound to widen as women lose in labor market experience;
- But from a longer term perspective the rise in work flexibility during a pandemic recession is likely to be persistent, and disproportionately benefits women who have major childcare responsibilities. This could also shift social norms towards a more equal sharing of childcare obligations between mothers and fathers.
This Time It’s Different: The Role of Women’s Employment in a Pandemic Recession
Authors: Titan Alon, Matthias Doepke, Jane Olmstead-Rumsey, Michèle Tertilt
From: University of California San Diego, Northwestern University, University of Mannheim
In the US Federal investment is needed
Like other industries in the service sector, the childcare industry has suffered large job losses due to the pandemic, some of which are likely to be permanent. Between March and April, 351,500 child-care workers lost their jobs with just under one-third of those jobs having been recovered in May and June. According to a July survey of childcare programs by the National Association for the Education of Young Children (NAEYC) enrollment in these programs had dropped by two-thirds. The same survey found that 40% of such programs said they would have to close if they did not receive government support.
The Importance of Childcare in Reopening the Economy
By: Alicia Sasser Modestino, Jamie Ladge, Alisa Lincoln – Northeastern University
