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The effects of COVID-19 on labor force nonparticipation in the short run: racial and ethnic disparities

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  • Oudom Hean
  • Nattanicha Chairassamee

Abstract

We study the labor force nonparticipation in U.S. metropolitan areas during the early period of the COVID-19 crisis. While the magnitudes are small, we observe statistically significant differences between non-white and white workers’ labor nonparticipation. In particular, non-white workers in the ‘very-low teleworkable’ industries are more likely to drop out of the labor market. Aside from race or ethnicity, market conditions, including a lack of jobs, or a belief that jobs are unavailable, are important explanations for labor market nonparticipation. Health concerns and household responsibilities become more significant over time in motivating non-white workers to drop out of the labor market.

Suggested Citation

  • Oudom Hean & Nattanicha Chairassamee, 2024. "The effects of COVID-19 on labor force nonparticipation in the short run: racial and ethnic disparities," Review of Social Economy, Taylor & Francis Journals, vol. 82(3), pages 444-475, July.
    • Handle: RePEc:taf:rsocec:v:82:y:2024:i:3:p:444-475
    DOI: 10.1080/00346764.2022.2086997
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