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The effect of COVID-19 and the wage compensation measure on income-related gender disparities
[journal article]
Abstract Many countries implemented wage compensation measures during the COVID-19 crisis to alleviate income losses and avoid employment reductions. We focus on the gender dimension of incomes in Estonia, which has been grappling with the highest gender wage gap in Europe, and investigate whether the crisis... view more
Many countries implemented wage compensation measures during the COVID-19 crisis to alleviate income losses and avoid employment reductions. We focus on the gender dimension of incomes in Estonia, which has been grappling with the highest gender wage gap in Europe, and investigate whether the crisis and related wage compensation may have worsened existing gender imbalances. Using detailed administrative datasets and EUROMOD microsimulation model, we show that the COVID-19 crisis had a significant negative effect on employment income for both men and women, but the wage compensation implemented in 2020 appeared to cushion these effects. Income losses were slightly higher for men, but the cushioning effect of the compensation was higher for women. Overall, income-related gender disparities did not change significantly during the crisis. Still, the wage compensation measure has contributed to preventing income-related gender disparities increasing further, particularly in the hotels and restaurants sector and wholesale and retail trade sector.... view less
Keywords
contagious disease; epidemic; Estonia; income; simulation; inequality; gender-specific factors; income effect
Classification
Labor Market Research
Women's Studies, Feminist Studies, Gender Studies
Free Keywords
Corona; COVID-19; Coronavirus; wage compensation; microsimulation; gender inequality; EU-SILC 2019
Document language
English
Publication Year
2022
Page/Pages
p. 146-166
Journal
Baltic Journal of Economics, 22 (2022) 2
DOI
https://doi.org/10.1080/1406099X.2022.2149976
ISSN
1406-099X
Status
Published Version; peer reviewed