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Only Spot a Few Blacks the Higher I Go: Occupational Segregation and the COVID-19 Pandemic

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Abstract

This project examines whether there exists a link between occupational segregation by race and labor market outcomes during the COVID-19 pandemic. We estimate the extent to which workers employed in occupations with higher concentrations of Black workers were more likely to indicate a change in employer, a change in hours employed, or a change in earnings during the pandemic. The results show that Black workers employed in occupations with higher concentrations of Black workers are more likely to indicate a reduction in hours and earnings compared to White workers employed in occupations with similar concentrations of Black workers during the pandemic. These results do not exist between Hispanic and White workers when comparing individuals employed in occupations with similar concentrations of Hispanic workers. Considering that short-term unemployment, long-term unemployment, or a reduction in earnings can affect future Social Security payments, racial differences in labor market outcomes are directly related to SSA programs and may have lasting impacts on individuals during older ages.

Key Findings

  • A higher percentage of Black workers indicated that they stopped working, started working for a new employer, had their hours reduced, and had their earnings decreased during the pandemic compared to Hispanic and white workers.
  • In comparison, a higher percentage of white workers indicated that their hours and earnings increased compared to Black and Hispanic workers.
  • A higher percentage of Black workers are employed in racially segregated occupations compared to Hispanic and white workers.
  • After accounting for individual characteristics, economic models show that Black workers employed in occupations with higher concentrations of Black workers are more likely to indicate a reduction in hours and earnings compared to white workers employed in occupations with similar concentrations of Black workers during the pandemic.
  • This relationship does not exist between Hispanic and white workers when comparing individuals employed in occupations with similar concentrations of Hispanic workers.

Citation

Williams, Jhacova, Taylor Franklin, and Andre Brown. 2023. “Only Spot a Few Blacks the Higher I Go: Occupational Segregation and the COVID-19 Pandemic.” Ann Arbor, MI. University of Michigan Retirement and Disability Research Center (MRDRC) Working Paper; MRDRC WP 2023-472. https://mrdrc.isr.umich.edu/publications/papers/pdf/wp472.pdf

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Project

Paper ID

WP 2023-472

Publication Type

Working Paper

Publication Year

2023