DIFFERENTIAL EFFECTS OF THE LOCKDOWN ON LABOUR MARKET OUTCOMES. EVIDENCE FOR AN EMERGING ECONOMY

Abstract

COVID-19 created a market reconfiguration scenario: the match between supply and demand was disrupted due to social distancing measures. This investigation provides empirical evidence on the impacts of the pandemic on unemployment, wages, hours worked, and recent unemployment in an emerging economy like Colombia. The pandemic does not substantially amplify the negative / regrettable variation of the variables as it is due to a structural problem. Using a difference-in-difference models and the Oaxaca-Blinder decomposition, the results suggest that lockdown did not intensify unemployment or the reduction of wages for women, but it did for young people and in the artistic activities sector. So, strengthening fragile sectors and jobs is identified as the labour policy commitment to implement.