COVID-19 and heterogeneous vulnerabilities in the Peruvian labor market: implications for social inequalities and for gender gaps

Rosa Luz Durán

doi:10.1007/s40888-021-00245-5

Abstract

Using quarterly data from the 2020 Peruvian National Household Survey (ENAHO), this paper estimates the differentiated impacts of the COVID-19 pandemic on a set of labor market indicators, such as labor participation, occupational categories, informality, and number of hours worked. The impacts are calculated from an individual perspective (effects on the activities of the heads of household and their spouses, distinguishing them according to sex) and also from a joint strategy perspective among the partners. The results indicate that the intersectionalities of vulnerability considered (rural/urban area, and those contained in the type of households and in the situation of single-parenting or two-parenting of household heads and their spouses) determine that women, who live in rural areas, have children and do not have a partner were the most affected by the global health crisis.

Highlights

Worldwide, Peru is one of the countries that have been most affected by the COVID19 crisis
This paper shows how the COVID-19 crisis is affecting workers in various industries, occupations and types of employment in a differentiated way, and what the impacts of this are on inequalities and gender gaps between individuals within the Peruvian labor market
Unlike in previous economic recessions, the authors argue, government officials ordered industries previously considered immune to recessions, and which happen to have overrepresentation of women, to stop or significantly slow down their activity. This coincides with Alon et al (2020) finding that the COVID-19 crisis is affecting gender inequality differently than how conventional recessions have affected it in the past, due to the interactions that have been generated among the adoption of flexible jobs, family labor reassignments both inside and outside the home, and the harder restrictions suffered by the activities of economic sectors with high rates of female participation

Summary

Introduction

Peru is one of the countries that have been most affected by the COVID19 crisis. According to the administrative records of the Ministry of Labor and Employment Promotion (MTPE)’s electronic worksheet and formal employment monitoring board, in March 2020 there was a net loss of 151,099 jobs nationwide, and 160,090 in April of the same year. These private formal sector workers were found in the commerce, services, manufacturing, and construction sectors. This paper shows how the COVID-19 crisis is affecting workers in various industries, occupations and types of employment in a differentiated way, and what the impacts of this are on inequalities and gender gaps between individuals within the Peruvian labor market. An important and distinctive element is the incorporation of an intra-household perspective, which takes into account that workers do not live in isolation, and that their interactions with other workers in the same family, within the home, can alter vulnerabilities to shocks to set in motion strategies for diversifying activities among the members of the couple, for example, that help to better cope with the crisis

Literature review

Methodological considerations

Results

Conclusions and recommendations