The Influence of Pandemics on Women's Labor Market Expectations and Job Search Behavior
Abstract
The COVID-19 pandemic dramatically slowed economic activity worldwide as governments implementedcontainment measures affecting firms' demand for labor and workers' ability and willingness to work. The
negative effect of the pandemic on employment was disproportionately borne by women (“she-cession”)
due to greater disruptions in female-dominated industries and occupations, and a larger increase in
childcare burden upon school closures. We examine whether exposure to the pandemic influenced labor
market expectations and aspirations of young women who were about to transition from school to work.
We focus on female vocational trainees in India and study how pandemic-induced disruptions to their
training programs and negative shocks experienced by their households influenced their reservation wage,
expected salary, job preferences, and perceived employment barriers. The study of how COVID-19 has
affected women’s labor market prospects is crucial for understanding its longer-term impact on female
labor force participation as expectations are critical determinants of labor market choices.
Using the baseline survey of a randomized control trial aiming to reduce informational barriers among
these female trainees, we estimate the effect of COVID-19 using two different definitions of “exposure”
to mitigate endogeneity concerns. First, we create a “leave-one-out” COVID-19 measure for each woman
in our sample by calculating the share of other respondents from her vocational institution that reported
being exposed to a COVID-19 shock. We then regress our outcomes of interest on these individual-level
exposure variables, a rich set of controls, and district-fixed effects. Second, we estimate our models using an “aggregate COVID-19 shock” defined as the population-adjusted district-level total number of COVID-19 deaths to validate our estimations using self-reported exposure. Our preliminary results show that the pandemic decreased women’s reservation wage and expected salary. Further analysis will explore effects on additional labor market expectation outcomes and analyze heterogeneity by respondents’ personality traits, agency, and community-level social norms.