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Gender and racial differences in the earnings penalty of working from home before and during the COVID-19 pandemic

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  • Maia, Alexandre Gori
  • Lu, Yao

Abstract

We investigate differences in earnings penalties associated with working from home (WFH) between groups of gender and race before and during the COVID-19 pandemic in Brazil. Using a large and nationally representative longitudinal dataset, we show that the earnings penalty associated with WFH diminished for White and Black men during the pandemic while remaining high for White and Black women. We further examine three mechanisms explaining these changes: i) the equilibrium between supply and demand, as more women than men transitioned to WFH during the pandemic; ii) labor productivity, as the effective working hours of Black women were more affected by WFH; and ii) visibility and promotion, as White women became less likely than White men to be promoted when WFH during the pandemic.

Suggested Citation

  • Maia, Alexandre Gori & Lu, Yao, 2024. "Gender and racial differences in the earnings penalty of working from home before and during the COVID-19 pandemic," IDB Publications (Working Papers) 13674, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:13674
    DOI: http://dx.doi.org/10.18235/0013104
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    References listed on IDEAS

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    1. David Atkin & Antoinette Schoar & Sumit Shinde, 2023. "Working from Home, Worker Sorting and Development," NBER Working Papers 31515, National Bureau of Economic Research, Inc.
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      More about this item

      Keywords

      Gender and race disparities; Telework; remote work; Labor marketinequalities; Wage penalty;
      All these keywords.

      JEL classification:

      • 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
      • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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