The study uses administrative data for 35 million private-sector jobs in Mexico to investigate the differences between the Great Lockdown (GL) and the Great Recession (GR). Using an event-study design, researchers observe that the GL produced more loss of employment than the GR. The researchers then document five heterogeneous facts. First, men and women were similarly affected by each crisis. Second, both recessions impacted the youngest workers (15 to 29 years old), but the GL also negatively impacted those over 60 years. Third, the GR produced more job loss in large companies (over 1000 workers), while the effects of the GL were greatest in small and medium-sized companies. Fourth, in both crises, individuals were most affected at the extremes of the income distribution. Finally, the construction industry was detrimentally affected in both the GL and GR. The hospitality-focused service sector was more impacted in the GL than the GR.

Country:
Program Area:
Study Type:
Descriptive / Surveillance
Timeline:
2020
Implemented by IPA:
No
Impact Goals:
Build resilient and adaptable businesses and employment opportunities; Improve social-safety net responses
Outcomes of Interest:
Employment, Labor Market Participation
External Website:
Results Status:
Results
Key Findings:
  • Men and women were similarly affected by each crisis.
  • Both recessions impacted the youngest workers (15 to 29 years old), but the Great Lockdown also negatively impacted those over 60 years.
  • The Great Recession produced more job loss in large companies (over 1000 workers), while the effects of the Great Lockdown were greatest in small and medium-sized companies.
  • In both crises, individuals were most affected at the extremes of the income distribution.
  • The construction industry was detrimentally affected in both the Great Lockdown and Great Recession. The hospitality-focused service sector was more impacted in the Great Lockdown than the Great Recession.