The COVID-19 Pandemic in Latin American and Caribbean countries: Gender Differentials in Labor Market Dynamics

Abstract

We study gender differences in changes in labor market dynamics before the pandemic and during the COVID-19 pandemic in four Latin American and Caribbean (LAC) countries: Brazil, Chile, Dominican Republic, and Mexico. Specifically, we look at differences in labor market states and at differences in the transitions of workers across labor market states. To identify the pandemic's impact, we compare labor market stocks and labor market flows for a number of balanced panels of workers during the pandemic and before the pandemic. We find that the pandemic has negatively affected employment and labor market participation of both men and women, but that the effect is significantly stronger for women, magnifying the already large gender gaps observed in LAC countries. The main channel generating this stronger impact is the increase in child care work performed by women with school-age children.