Fired and Pregnant: Gender Differences in Job Flexibility Outcomes after Job Loss

Abstract

We study whether women and men cope with job loss differently, focusing on the importance of workers’ job flexibility and household setting. Our empirical analysis is based on Dutch administrative monthly micro data over the period 2006-2017 using a quasi-experimental design involving job loss following firm bankruptcy. We find for displaced women, but not for displaced men, a persistence in job flexibilities involving limited working hours and short commutes. Importantly, job loss results in a smaller loss in hourly wages and longer unemployment for women, narrowing the gender wage gap but widening the gender employment gap. Also, we show that female workers who are pregnant when job loss occurs experience large losses in employment and conditional on re-employment take up a flexible job. Policy advice is to put a safety net in place to protect pregnant women against the long-term consequences of job loss.