The effects of COVID-19 on labor force nonparticipation in the short run: racial and ethnic disparities

Oudom Hean and Nattanicha Chairassamee

Review of Social Economy, 2024, vol. 82, issue 3, 444-475

Abstract: We study the labor force nonparticipation in U.S. metropolitan areas during the early period of the COVID-19 crisis. While the magnitudes are small, we observe statistically significant differences between non-white and white workers’ labor nonparticipation. In particular, non-white workers in the ‘very-low teleworkable’ industries are more likely to drop out of the labor market. Aside from race or ethnicity, market conditions, including a lack of jobs, or a belief that jobs are unavailable, are important explanations for labor market nonparticipation. Health concerns and household responsibilities become more significant over time in motivating non-white workers to drop out of the labor market.

Date: 2024
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DOI: 10.1080/00346764.2022.2086997

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