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COVID-19, Income Shocks and Female Employment

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  • Ishaan Bansal

    (IDInsight)

Abstract

Existing evidence shows that the Covid-19 pandemic has led to employed women witnessing larger losses in the labor market in India. We examine the heterogeneity that underlie these trends by studying the impact of Covid-19 induced income shocks on female employment. Using individual level panel data and a difference-in-differences strategy that exploits lockdown timing (April 2020) and accounts for seasonal employment trends, we find that women in households facing a hundred percent reduction in household male income during the lockdown were 1.5 pp (25%) more likely to take up work during the "unlockdown" months (June-August 2020). We also find these results to be predominant in poorer and less educated households. However, these positive employment trends are only transitory in nature with a reversal in female employment in these households from September 2020 onwards. These findings underscore the use of women's labor as insurance during low-income periods by poorer households.

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  • Ishaan Bansal, 2021. "COVID-19, Income Shocks and Female Employment," Working Papers 71, Ashoka University, Department of Economics.
    • Handle: RePEc:ash:wpaper:71
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    References listed on IDEAS

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    3. Paola Manzini & Marco Mariotti, 2007. "Sequentially Rationalizable Choice," American Economic Review, American Economic Association, vol. 97(5), pages 1824-1839, December.
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