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Labour Market Flows and Gender Differentials in Urban Unemployment over the Pandemic

Author

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  • Paaritosh Nath

    (Azim Premji University)

  • Rahul Menon

    (O.P. Jindal Global University)

Abstract

Utilising data from the Periodic Labour Force Survey (PLFS), we estimate quarterly changes in urban labour market flows over the period 2018–2022 and the impact on unemployment rates for men and women. Our analysis provides non-intuitive explanations for established findings as well as pointing out important questions for further study. Both men and women’s unemployment rates have reduced in 2022 compared to 2018, showing rapid reductions following the high levels reached during the lockdown. Women’s unemployment rates have consistently been higher than men throughout this period. The gap between men and women’s unemployment rates reduced during the lockdown, but have shown signs of increasing since 2021, even as unemployment rates have fallen. For women, flows from the labour force to non-participation play a larger role in explaining changes in unemployment rates as compared to men. Flows from the labour force to non-participation, however, have reduced since the pandemic, providing an explanation as to why labour force participation rates (LFPRs) have increased, namely women staying for longer in the labour force rather than more women entering it. Despite rising LFPRs, the gender gap in unemployment rates have risen, in contrast to developed economies.

Suggested Citation

  • Paaritosh Nath & Rahul Menon, 2024. "Labour Market Flows and Gender Differentials in Urban Unemployment over the Pandemic," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(1), pages 73-96, March.
    • Handle: RePEc:spr:ijlaec:v:67:y:2024:i:1:d:10.1007_s41027-024-00481-w
    DOI: 10.1007/s41027-024-00481-w
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    References listed on IDEAS

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    1. Ghazala Azmat & Maia Güell & Alan Manning, 2006. "Gender Gaps in Unemployment Rates in OECD Countries," Journal of Labor Economics, University of Chicago Press, vol. 24(1), pages 1-38, January.
    2. Stefania Albanesi & Aysegul Sahin, 2018. "The Gender Unemployment Gap," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 30, pages 47-67, October.
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    4. Jitender Singh, 2023. "Unemployment Fluctuations in Urban Labour Market in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 81-111, March.
    5. Anindita Sengupta, 2023. "Effect of COVID-19 Pandemic on Employment and Earning in Urban India during the First Three Months of Pandemic Period: An Analysis with Unit-Level Data of Periodic Labour Force Survey," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 283-298, March.
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    7. Ashwini Deshpande, 2022. "The Covid-19 pandemic and gendered division of paid work, domestic chores and leisure: evidence from India’s first wave," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(1), pages 75-100, April.
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    More about this item

    Keywords

    Unemployment; Gender; PLFS; Labour force; Transitions; Pandemic;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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