Can Telework Adjustment Help Reduce Disaster-Induced Gender Inequality in Job Market Outcomes?

Abstract

This study investigates the role of telework adjustment in addressing gender inequality in the labor market induced by disasters, taking the COVID-19 disaster as an example. Disasters often disrupt labor markets, disproportionately impacting female workers because of traditionally greater domestic responsibilities, thus increasing gender inequality. In such a case, telework adjustment has emerged as a silver lining, granting enhanced flexibility, particularly benefiting female workers and catering to their needs. Our analysis reveals that (1) comparing workers in the same industry and holding the same occupation, we find that female workers’ telework adjustment rate is more responsive to external constraints and is 7% higher than that of male workers. (2) Telework adjustment helps reduce gender inequality in labor market outcomes via two means: (i) the higher telework adjustment rate among female workers (which reduces gender inequality by 25.48%) and (ii) the stronger marginal effect of telework adjustment on female workers (which reduces gender inequality by 31.94%). (3) Better digital infrastructure can enhance the mitigating effect of telework adjustment. Our findings offer compelling insights for policymakers and business leaders, emphasizing the strategic role of telework adjustment and digital infrastructure investments as crucial levers in promoting gender inequality during and beyond disaster scenarios.