Abstract

Youth unemployment and gender gaps in labor market outcomes are key policy challenges across developing countries. Young job seekers may struggle to find jobs because of their biased beliefs and unrealistic aspirations about the labor market. We study whether exposure to the COVID-19 pandemic influenced the labor market aspirations and expectations of female vocational students in Haryana, India. We find that exposure to the pandemic lowered young women's wage aspirations and made them more realistic, especially in rural areas. A potential mechanism for these effects is the decline in rural women's willingness to migrate for work due to the pandemic.

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