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COVID-19: a crisis of the female self-employed

  • We investigate how the economic consequences of the pandemic, and of the government-mandated measures to contain its spread, affect the self-employed – particularly women – in Germany. For our analysis, we use representative, real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that among the self-employed, who generally face a higher likelihood of income losses due to COVID-19 than employees, women are 35% more likely to experience income losses than their male counterparts. Conversely, we do not find a comparable gender gap among employees. Our results further suggest that the gender gap among the self-employed is largely explained by the fact that women disproportionately work in industries that are more severely affected by the COVID-19 pandemic. Our analysis of potential mechanisms reveals that women are significantly more likely to be impacted by government-imposed restrictions, i.e. the regulation of opening hours. We conclude that future policy measuresWe investigate how the economic consequences of the pandemic, and of the government-mandated measures to contain its spread, affect the self-employed – particularly women – in Germany. For our analysis, we use representative, real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that among the self-employed, who generally face a higher likelihood of income losses due to COVID-19 than employees, women are 35% more likely to experience income losses than their male counterparts. Conversely, we do not find a comparable gender gap among employees. Our results further suggest that the gender gap among the self-employed is largely explained by the fact that women disproportionately work in industries that are more severely affected by the COVID-19 pandemic. Our analysis of potential mechanisms reveals that women are significantly more likely to be impacted by government-imposed restrictions, i.e. the regulation of opening hours. We conclude that future policy measures intending to mitigate the consequences of such shocks should account for this considerable variation in economic hardship.show moreshow less

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Author details:Daniel GraeberORCiDGND, Alexander KritikosORCiDGND, Johannes SeebauerORCiD
URN:urn:nbn:de:kobv:517-opus4-498108
DOI:https://doi.org/10.25932/publishup-49810
ISSN:2628-653X
Title of parent work (English):CEPA Discussion Papers
Publication series (Volume number):CEPA Discussion Papers (27)
Publication type:Working Paper
Language:English
Date of first publication:2021/03/10
Publication year:2021
Publishing institution:Universität Potsdam
Release date:2021/03/10
Tag:COVID-19; decomposition methods; gender; income; representative real-time survey data; self-employed
Issue:27
Number of pages:72
RVK - Regensburg classification:QP 380, QV 221
Organizational units:Extern / Extern
Zentrale und wissenschaftliche Einrichtungen / Center for Economic Policy Analysis (CEPA)
Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften / Fachgruppe Volkswirtschaftslehre
DDC classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
JEL classification:I Health, Education, and Welfare / I1 Health / I18 Government Policy; Regulation; Public Health
J Labor and Demographic Economics / J1 Demographic Economics / J16 Economics of Gender; Non-labor Discrimination
J Labor and Demographic Economics / J3 Wages, Compensation, and Labor Costs / J31 Wage Level and Structure; Wage Differentials
J Labor and Demographic Economics / J7 Labor Discrimination / J71 Discrimination
L Industrial Organization / L2 Firm Objectives, Organization, and Behavior / L26 Entrepreneurship
Peer review:Nicht referiert
License (German):License LogoKeine öffentliche Lizenz: Unter Urheberrechtsschutz
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