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The impact of the COVID-19 pandemic on post-great recession entrants: Evidence from Mexico

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  • Osuna-Gomez, Daniel

Abstract

I study the impact of the COVID-19 pandemic on the formal employment of entrants from each post-Great Recession year. Using longitudinal Mexican social security records and an individual fixed effects difference-in-differences design, I find that the pandemic caused entrants from each post-Great Recession year to lose formal employment at higher rates than individuals who joined the formal sector before them. This gap is narrowing as the economy recovers. My results are explained by differences in firm-specific tenure and pre-pandemic wages, not by geographical variations in hysteresis from the Great Recession.

Suggested Citation

  • Osuna-Gomez, Daniel, 2023. "The impact of the COVID-19 pandemic on post-great recession entrants: Evidence from Mexico," Labour Economics, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:labeco:v:81:y:2023:i:c:s092753712300012x
    DOI: 10.1016/j.labeco.2023.102337
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    More about this item

    Keywords

    COVID-19 pandemic; Post-great recession entrants; Formal markets; Tenure;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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