Deepening Labor Market Inequalities During the COVID-19 Pandemic: Evidence from Turkey

Abstract

This article investigates how the COVID-19 pandemic affected the labor market in Turkey, using a unique dataset collected via face-to-face interviews in the fall of 2020. In a developing country where labor market gaps are already stark, the study shows that the COVID-19 pandemic has exacerbated existing vulnerabilities in labor markets. Results indicate that women, low-educated individuals, parents, self-employed, and informal sector employees were at greater risk of worsened labor market outcomes. Moreover, the individuals at the intersection of these vulnerabilities suffered more. These findings suggest that the labor market policies introduced at the onset of the pandemic remained limited in protecting the jobs of vulnerable groups. HIGHLIGHTS COVID-19 magnified existing inequalities in the labor market in Turkey. The intersection between gender, education, and parenthood shaped the labor outcomes. Women without a high school degree and with children were the most vulnerable. Low-educated parents in particular were more likely to face income and job loss. Informally employed and the self-employed were more likely to suffer income losses.