Abstract
In a globalized world, pandemics transmit impacts through markets. We document employment changes, coping strategies, and welfare of garment factory workers in Ethiopia's largest industrial park during the early stages of the Coronavirus Disease 2019 pandemic. We field a phone survey of female workers during a two month period in which cases are rapidly rising globally, but not locally. Our data suggest significant changes in employment, high levels of migration away from urban areas to rural areas if women are no longer working, and high levels of food insecurity. These findings compel a research and policy focus on documenting and mitigating the market-reach of pandemics on low-income workers at the margins.
Highlights
This research note documents impacts of the Coronavirus Disease 2019 (COVID-19) pandemic on low-wage manufacturing workers at the margins of the global economy
We conduct a phone survey with a random sample of female readymade garment (RMG) workers employed before the start of the crisis in Hawassa Industrial Park (HIP), Ethiopia’s flagship special economic zone
Our findings suggest a role for policy makers to put in place insurance and social protection policies that help firms and workers retain jobs, even in places not directly suffering from the pandemic
Summary
This research note documents impacts of the Coronavirus Disease 2019 (COVID-19) pandemic on low-wage manufacturing workers at the margins of the global economy. In the readymade garment (RMG) industry and its global value chains, the sharp economic downturn in key consumer markets has led to order cancellations This pandemic-induced demand shock threatens the livelihoods of production workers in countries such as Ethiopia. Many respondents who have lost employment have migrated out of Hawassa Those who have migrated report lower levels of food insecurity, 67 percent of our sample remain in a location that is not their desired location. Our findings suggest a role for policy makers to put in place insurance and social protection policies that help firms and workers retain jobs, even in places not directly suffering from the pandemic They call for researchers, policymakers, and development partners to adopt a comprehensive perspective that takes into account the indirect impacts of this global crisis. A fifth section concludes with brief policy recommendations and suggestions for future research
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