The Effect of COVID-19 as an Economic Shock on the Gender and Ethnic Gap in Labour Market Outcomes

2021 ◽  
pp. 232102222110464
Author(s):  
Stefani Milovanska-Farrington

With more than 29 million confirmed cases of COVID-19 in the USA and 119 million cases worldwide, the pandemic has affected companies, households and the global economy. We explore the effect of the economic shock which resulted from this specific health event on labour market outcomes, and the changes in labour market disparities between ethnic groups and genders. The results provide evidence of an adverse effect of COVID-19 on labour market outcomes of all demographic groups, a widening gap between the employment prospects of minorities and whites, but no change in the earnings gaps between ethnic groups. We also do not find a deterioration of the differentials between genders, except the increase in the difference in the duration of unemployment between women and men with children. The findings have implications related to the priorities of policy decision-makers when implementing policies to combat ethnic and gender gaps in the labour market. JEL Classification: J70, J71, J01, J15, J23

Author(s):  
Miriam Schmaus

Abstract Host country language proficiency has been shown to account for ethnic differences in labour market outcomes. Prior studies generally assume that language skills represent a form of human capital, affecting employees’ productivity. However, language proficiency may also be associated with discrimination. Lower language proficiency may elicit distaste for certain ethnic groups, as it is a prominent reminder of the respective origin. When this reminder vanishes as language skills rise, group-specific distaste should also reduce. Employers may thus not only value language skills in terms of productivity but also factor in less group-specific distaste when evaluating immigrant jobseekers with high-language skills. Moreover, if employers lack information on competences that are hard to observe, high-language proficiency may prevent the application of adverse ethnic beliefs. Using data from the National Educational Panel Study (NEPS), I examine whether language skills affect crucial indicators of labour market success differently for groups that vary with respect to the level of distaste associated with them. I also investigate whether this effect is conditional on the amount of information available to employers. Findings indicate group-specific returns to higher-language proficiency, irrespective of the available information. This might suggest that, in addition to affecting employees’ productivity, language proficiency may also be associated with taste discrimination for certain ethnic groups.


Urban Studies ◽  
2017 ◽  
Vol 55 (8) ◽  
pp. 1800-1820 ◽  
Author(s):  
Janeria Easley

United States (US) based research suggests that distance between residency and employment constrains labour market outcomes for black Americans. Work on this phenomenon, termed spatial mismatch, suggests that residential segregation from whites shapes labour market outcomes among blacks by restricting access to job-dense suburbs. However, few studies examine patterns and drivers of spatial mismatch among Asian and Hispanic subpopulations. Using data on job counts from the 2010 Zip Code Business Patterns data set and on population counts from the 2010 US decennial Censuses, I estimate spatial mismatch for the largest ethnoracial groups in the USA: black, white, Mexican, Puerto Rican, Cuban, Indian, Chinese, Filipino, Korean, Japanese and Vietnamese Americans. To measure spatial mismatch, I create indices of dissimilarity between jobs and residency for all Metropolitan Statistical Areas (MSAs) with available data. Estimates of spatial mismatch based on panethnic categories mask subpopulation heterogeneity. Most subgroups experience higher spatial mismatch than indicated by the panethnic category. The results also show novel racial differences: the average Vietnamese and Cuban American experience higher spatial mismatch than the average black American. Segregation from whites is a central predictor of exposure to spatial mismatch across all minority groups, though findings suggest that this relationship is not driven by suburbanisation.


Author(s):  
Kehinde Oluwaseun Omotoso ◽  
Jimi Adesina ◽  
Ololade G. Adewole

Technology plays a significant role in bridging gender gap in labour market outcomes. This paper investigates gender differential in broadband Internet usage and its effects on women‘s labour market participation. Employing an instrumental variable approach, findings suggest that exogenously determined high-speed broadband internet usage leads to increases of about 14.1 and 10.6 percentage points in labour market participation for single women and married women with some level of education, respectively. Moreover, further analyses suggest that married women are generally less likely to use the Internet to search for job opportunities and this could partly explains their low labour market participation rate. The findings suggest that more policy effort is required to bridge gender differentials in digital technologies and employment opportunities in South Africa.


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