COVID-19: a crisis of the female self-employed

Daniel Graeber; Alexander S Kritikos; Johannes Seebauer

doi:10.1007/s00148-021-00849-y

COVID-19: a crisis of the female self-employed

J Popul Econ. 2021;34(4):1141-1187. doi: 10.1007/s00148-021-00849-y. Epub 2021 Jun 11.

Authors

Daniel Graeber^{1

2}, Alexander S Kritikos^{1

2

3}, Johannes Seebauer^{1

4}

Affiliations

¹ DIW Berlin, Mohrenstr. 58, 10117 Berlin, Germany.
² University of Potsdam, Potsdam, Germany.
³ GLO, Essen, Germany.
⁴ Freie Universität Berlin, Berlin, Germany.

Abstract

We investigate how the economic consequences of the pandemic and the government-mandated measures to contain its spread affect the self-employed - particularly women - in Germany. For our analysis, we use representative, real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that among the self-employed, who generally face a higher likelihood of income losses due to COVID-19 than employees, women are about one-third more likely to experience income losses than their male counterparts. We do not find a comparable gender gap among employees. Our results further suggest that the gender gap among the self-employed is largely explained by the fact that women disproportionately work in industries that are more severely affected by the COVID-19 pandemic. Our analysis of potential mechanisms reveals that women are significantly more likely to be impacted by government-imposed restrictions, e.g., the regulation of opening hours. We conclude that future policy measures intending to mitigate the consequences of such shocks should account for this considerable variation in economic hardship.

Keywords: COVID-19; Decomposition methods; Gender; Income; Representative real-time survey data; Self-employed.