Abstract

This study examines changes in labor supply, income, and time allocation during the COVID-19 pandemic in Mexico. Using an event-study design, we show that the COVID-19 recession had severe negative consequences for Mexican households. In the first month of the pandemic, employment decline by 17 percentage points. Men recovered their employment faster than women, where men's employment is nearly back to original levels by 2021Q2. Women, on the other hand, experienced persistent employment losses. Within-household, men also increased their time spent on household chores while neither gender (persistently) increased their time spent caring for others. Instead, children reduced their time spent on schoolwork by 25 percent.

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