Multidimensional Deprivation from Labor Market Opportunities in Armenia: Evidence from 2018 and 2020

Area of Science:

• Labor Economics
• Socioeconomic Studies

Background:

• Multidimensional deprivation from labor market opportunities poses significant challenges.
• Assessing the Quality of Employment is crucial for understanding labor market dynamics.

Purpose of the Study:

• To construct and apply a Quality of Employment measure to analyze multidimensional deprivation in Armenia.
• To comparatively analyze job-separated individuals before and after the COVID-19 pandemic onset.

Main Methods:

• Utilized Labor Force Survey datasets for 2018 and 2020.
• Constructed a Quality of Employment measure.
• Analyzed dimensions of deprivation: reasons for job separation, reasons for not seeking employment, and obstacles in job searching.

Main Results:

• Demand-side factors were identified as primary drivers of increased labor market deprivation during the pandemic.
• The gender gap in labor market deprivation widened during the pandemic.
• The increased deprivation was further amplified for married women.

Conclusions:

• Job-related characteristics (demand factors) significantly impact labor market deprivation, particularly during crises like the COVID-19 pandemic.
• The pandemic exacerbated existing gender inequalities in the Armenian labor market.
• Occupational composition did not influence the gender gap in deprivation, suggesting systemic issues.