The vulnerability of women in the labor market is a well-established fact, but it can be long-lasting when a shock hits them. We examine women’s labor market conditions in a developing country with a substantial set of cultural norms and provide evidence that a job destructive shock persists longer among women. Specifically, probability of remaining unemployed after 20 months is about 50% for women while it is 10% for men. These findings are exacerbated for women who have not worked for more than 5 years and probably have lost their network or are new entrants in the job market. Moreover, women in the private sector, which is a more competitive market in Iran with respect to public jobs, are more prone to these burdens. The COVID-19 does not change this structure. Findings are robust to univariate Kaplan-Meier survival analysis and multivariate Cox models. These findings focus attention on policies that effectively break the vicious cycles causing sticky dynamics in the women’s labor market.

Authors
Sana Rashidi
Pre-Doctoral Research Fellow, London School of Economics

Research Fellows
Kowsar Yousefi
Associate Professor, Institute for Management and Planning...

Authors
Mohammad H. Rahmati
Associate Professor of Economics, Sharif University of...