IDEAS home Printed from https://ideas.repec.org/p/upj/weupjo/23-387.html
   My bibliography  Save this paper

Gender Gaps From Labor Market Shocks

Author

Listed:
  • Ria Ivandic

    (University of Oxford and London School of Economics)

  • Anne Sophie Lassen

    (Copenhagen Business School)

Abstract

Job loss leads to persistent adverse labor market outcomes, but assessments of gender differences in labor market recovery are lacking. We utilize plant closures in Denmark to estimate gender gaps in labor market outcomes and document that women face an increased risk of unemployment and lose a larger share of their earnings in the two years following job displacement. When accounting for observable differences in human Capital across men and women, half of the gender gap in unemployment remains. In a standard decomposition framework, we document that child care imposes an important barrier to women’s labor market recovery regardless of individual characteristics.

Suggested Citation

  • Ria Ivandic & Anne Sophie Lassen, 2023. "Gender Gaps From Labor Market Shocks," Upjohn Working Papers 23-387, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:23-387
    as

    Download full text from publisher

    File URL: https://research.upjohn.org/cgi/viewcontent.cgi?article=1406&context=up_workingpapers
    Download Restriction: This material is copyrighted. Permission is required to reproduce any or all parts.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pedro Raposo & Pedro Portugal & Anabela Carneiro, 2021. "The Sources of the Wage Losses of Displaced Workers: The Role of the Reallocation of Workers into Firms, Matches, and Job Titles," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 786-820.
    2. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    3. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    4. Browning, Martin & Heinesen, Eskil, 2012. "Effect of job loss due to plant closure on mortality and hospitalization," Journal of Health Economics, Elsevier, vol. 31(4), pages 599-616.
    5. Kenneth A. Couch & Dana W. Placzek, 2010. "Earnings Losses of Displaced Workers Revisited," American Economic Review, American Economic Association, vol. 100(1), pages 572-589, March.
    6. Kjell G. Salvanes & Barton Willage & Alexander Willén, 2024. "The Effect of Labor Market Shocks across the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 42(1), pages 121-160.
    7. Kunze, Astrid & Troske, Kenneth R., 2012. "Life-cycle patterns in male/female differences in job search," Labour Economics, Elsevier, vol. 19(2), pages 176-185.
    8. Mette Ejrnæs & Astrid Kunze, 2013. "Work and Wage Dynamics around Childbirth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(3), pages 856-877, July.
    9. Nikolay Angelov & Per Johansson & Erica Lindahl, 2016. "Parenthood and the Gender Gap in Pay," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 545-579.
    10. Gallen, Yana & Lesner, Rune V. & Vejlin, Rune, 2019. "The labor market gender gap in Denmark: Sorting out the past 30 years," Labour Economics, Elsevier, vol. 56(C), pages 58-67.
    11. Hannah Illing & Johannes Schmieder & Simon Trenkle, "undated". "The Gender Gap in Earnings Losses After Job Displacement," CRC TR 224 Discussion Paper Series crctr224_2022_381, University of Bonn and University of Mannheim, Germany.
    12. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    13. Michael Svarer, 2011. "The Effect of Sanctions on Exit from Unemployment: Evidence from Denmark," Economica, London School of Economics and Political Science, vol. 78(312), pages 751-778, October.
    14. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    15. Hale Utar, 2018. "Workers beneath the Floodgates: Low-Wage Import Competition and Workers’ Adjustment," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 631-647, October.
    16. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    17. Leombruni, Roberto & Razzolini, Tiziano & Serti, Francesco, 2013. "The pecuniary and non-pecuniary costs of job displacement—The risky job of being back to work," European Economic Review, Elsevier, vol. 61(C), pages 205-216.
    18. Grace W. Gu & Samreen Malik & Dario Pozzoli & Vera Rocha, 2020. "Trade‐Induced Skill Polarization," Economic Inquiry, Western Economic Association International, vol. 58(1), pages 241-259, January.
    19. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2019. "Child Penalties across Countries: Evidence and Explanations," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 122-126, May.
    20. Solène Delecourt & Anne Fitzpatrick, 2021. "Childcare Matters: Female Business Owners and the Baby-Profit Gap," Management Science, INFORMS, vol. 67(7), pages 4455-4474, July.
    21. Berniell, Inés & Berniell, Lucila & Mata, Dolores de la & Edo, María & Marchionni, Mariana, 2021. "Gender gaps in labor informality: The motherhood effect," Journal of Development Economics, Elsevier, vol. 150(C).
    22. Philip Oreopoulos & Marianne Page & Ann Huff Stevens, 2008. "The Intergenerational Effects of Worker Displacement," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 455-483, July.
    23. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation," Working Papers 811, Queen Mary University of London, School of Economics and Finance.
    24. Fane Groes & Philipp Kircher & Iourii Manovskii, 2015. "The U-Shapes of Occupational Mobility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 659-692.
    25. Virginia Hernanz & Juan F. Jimeno, 2017. "Youth Unemployment in the EU," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 18(02), pages 03-10, July.
    26. David H. Autor & David Dorn & Gordon H. Hanson, 2015. "Untangling Trade and Technology: Evidence from Local Labour Markets," Economic Journal, Royal Economic Society, vol. 0(584), pages 621-646, May.
    27. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    28. Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1265-1306.
    29. Mari Rege & Kjetil Telle & Mark Votruba, 2009. "The Effect of Plant Downsizing on Disability Pension Utilization," Journal of the European Economic Association, MIT Press, vol. 7(4), pages 754-785, June.
    30. Torben M. Andersen & Michael Svarer, 2007. "Flexicurity: Labour Market Performance in Denmark," CESifo Economic Studies, CESifo Group, vol. 53(3), pages 389-429, September.
    31. Bütikofer, Aline & Loken, Katrine Vellesen & Willén, Alexander, 2020. "Building Bridges and Widening Gaps: Wage Gains and Equity Concerns of Labor Market Expansions," IZA Discussion Papers 12885, Institute of Labor Economics (IZA).
    32. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    33. Inés Hardoy & Pål Schøne, 2014. "Displacement and household adaptation: insured by the spouse or the state?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 683-703, July.
    34. Claudia Goldin & Lawrence F. Katz, 2016. "A Most Egalitarian Profession: Pharmacy and the Evolution of a Family-Friendly Occupation," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 705-746.
    35. Hobijn, Bart & Sahin, Aysegül, 2009. "Job-finding and separation rates in the OECD," Economics Letters, Elsevier, vol. 104(3), pages 107-111, September.
    36. Claus Thustrup Kreiner & Michael Svarer, 2022. "Danish Flexicurity: Rights and Duties," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 81-102, Fall.
    37. Susan Harkness & Jane Waldfogel, 2003. "The Family Gap In Pay: Evidence From Seven Industrialized Countries," Research in Labor Economics, in: Worker Well-Being and Public Policy, pages 369-413, Emerald Group Publishing Limited.
    38. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, 2004. "Does the Gap in Family‐friendly Policies Drive the Family Gap?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 721-744, December.
    39. Alexander Hijzen & Richard Upward & Peter W. Wright, 2010. "The Income Losses of Displaced Workers," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    40. Aksoy, Cevat Giray & Özcan, Berkay & Philipp, Julia, 2021. "Robots and the gender pay gap in Europe," European Economic Review, Elsevier, vol. 134(C).
    41. Nabanita Datta Gupta & Nina Smith & Mette Verner, 2008. "PERSPECTIVE ARTICLE: The impact of Nordic countries’ family friendly policies on employment, wages, and children," Review of Economics of the Household, Springer, vol. 6(1), pages 65-89, March.
    42. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2010. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 291-330, April.
    43. Claus Thustrup Kreiner & Michael Svarer, 2022. "Danish Flexicurity: Rights and Duties," CEBI working paper series 22-16, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    44. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    45. Bognanno, Michael L. & Delgado, Lisa, 2005. "Job Displacement Penalties in Japan," IZA Discussion Papers 1650, Institute of Labor Economics (IZA).
    46. Emmanuel Skoufias & Susan Parker, 2006. "Job loss and family adjustments in work and schooling during the Mexican peso crisis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(1), pages 163-181, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," Labour Economics, Elsevier, vol. 83(C).
    2. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," LSE Research Online Documents on Economics 119948, London School of Economics and Political Science, LSE Library.
    3. Ria Ivandic & Anne Sophie Lassen, 2023. "Gender gaps from labor market shocks," CEP Discussion Papers dp1944, Centre for Economic Performance, LSE.
    4. Ivandic, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," LSE Research Online Documents on Economics 121285, London School of Economics and Political Science, LSE Library.
    5. Katrin Huber & Geske Rolvering, 2023. "Public child care and mothers’ career trajectories," CEPA Discussion Papers 64, Center for Economic Policy Analysis.
    6. Berniell, Inés & Berniell, Lucila & de la Mata, Dolores & Edo, María & Marchionni, Mariana, 2023. "Motherhood and flexible jobs: Evidence from Latin American countries," World Development, Elsevier, vol. 167(C).
    7. Lucifora, Claudio & Meurs, Dominique & Villar, Elena, 2021. "The “mommy track” in the workplace. Evidence from a large French firm," Labour Economics, Elsevier, vol. 72(C).
    8. Inés Berniell & Lucila Berniell & Dolores de la Mata & María Edo & Yarine Fawaz & Matilde P. Machado & Mariana Marchionni, 2020. "Motherhood and the Allocation of Talent," CEDLAS, Working Papers 0270, CEDLAS, Universidad Nacional de La Plata.
    9. Huber, Katrin & Rolvering, Geske, 2023. "Public Child Care and Mothers' Career Trajectories," IZA Discussion Papers 16433, Institute of Labor Economics (IZA).
    10. Jiang Li & Benoit Dostie & Gäelle Simard-Duplain, 2020. "What is the Role of Firm-Specific Pay Policies on the Gender Earnings Gap in Canada?," CIRANO Working Papers 2020s-67, CIRANO.
    11. Katrin Huber & Geske Rolvering, 2023. "Public child care and mothers’ career trajectories," Working Papers 228, Bavarian Graduate Program in Economics (BGPE).
    12. Alessandra Casarico & Salvatore Lattanzio, 2023. "Behind the child penalty: understanding what contributes to the labour market costs of motherhood," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1489-1511, July.
    13. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).
    14. Nan L. Maxwell & Nathan Wozny, "undated". "Gender Gaps in Time Use and Earnings: What's Norms Got to Do With It?," Mathematica Policy Research Reports 38f127bf7f494794807db7a3a, Mathematica Policy Research.
    15. Paul Bingley & Lorenzo Cappellari & Marco Ovidi, 2023. "When it hurts the most: timing of parental job loss and a child’s education," LISER Working Paper Series 2023-12, Luxembourg Institute of Socio-Economic Research (LISER).
    16. Corekcioglu, Gozde & Francesconi, Marco & Kunze, Astrid, 2020. "Do Generous Parental Leave Policies Help Top Female Earners?," IZA Discussion Papers 13275, Institute of Labor Economics (IZA).
    17. Zhang, Mingxue & Wang, Yue & Hou, Lingling, 2024. "Gender norms and the child penalty in China," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 277-291.
    18. Pedro Carneiro & Kjell Salvanes & Barton Willage & Alexander Willén, 2023. "Childhood Shocks Across Ages and Human Capital Formation," Working Papers 2023-018, Human Capital and Economic Opportunity Working Group.
    19. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2020. "Having it all, for all: Child-care subsidies and income distribution reconciled," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 188-211.
    20. Hennig, Jan-Luca & Stadler, Balazs, 2021. "Firm-specific pay premiums and the gender wage gap in 21 European countries," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242354, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    gender gaps; child care; job loss;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upj:weupjo:23-387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/upjohus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.