Effects of the COVID-19 pandemic on the Colombian labour market: Disentangling the effect of sector-specific mobility restrictions

  • 0Labor Market Analysis Group, Banco de la República.
The Canadian Journal of Economics. Revue Canadienne D'economique +

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Summary

This summary is machine-generated.

COVID-19 mobility restrictions significantly impacted Colombia's labor market, causing a quarter of job losses. Women faced disproportionate effects, widening the gender gap in salaried employment.

Area Of Science

  • Economics
  • Labor Economics
  • Public Health

Background

  • The COVID-19 pandemic introduced unprecedented challenges to global labor markets.
  • Sector-specific mobility restrictions were implemented to curb disease spread, with unknown labor market consequences.

Purpose Of The Study

  • To assess the impact of COVID-19 and sector-specific mobility restrictions on the Colombian labor market.
  • To quantify the contribution of mobility restrictions versus other factors to job losses.

Main Methods

  • Exploiting sectoral and temporal variation in restriction policies.
  • Analyzing employment, hours worked, and wages across different worker types.

Main Results

  • Mobility restrictions accounted for approximately 25% of total job losses between February and April 2020.
  • Restrictions had smaller negative effects on hours worked and wages.
  • Salaried workers experienced the most significant employment impact, while self-employment was more sensitive to disease spread.
  • Women were disproportionately affected, contributing to a third of the increased gender gap in salaried employment.

Conclusions

  • Sector-specific mobility restrictions were a significant, but not the sole, driver of job losses during the initial phase of the pandemic in Colombia.
  • The disease's spread and broader economic factors also played a substantial role in overall employment decline.
  • Policy interventions must consider differential impacts on various demographic groups, particularly women.

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