Racial, Ethnic, and Gender Disparities in Labor Market Outcomes in the Aftermath of the COVID-19 Pandemic
Authors
Abstract
Using longitudinal data from the Understanding America Study (UAS) covering the onset and aftermath of the COVID-19 pandemic, we examine the evolution of sex and racial/ethnic disparities in employment status and work arrangements. We document differences across workers in the type of work they engage in (full/part-time, gig work), ability/possibility to work from home (WFH), and willingness to pay for more days of WFH. We relate WFH arrangements to job satisfaction, turnover intentions, and workers’ well-being. We find that the labor market turmoil induced by the pandemic in 2020 predominantly impacted minority workers, particularly Blacks and Hispanics, who faced higher transitions out of full-time employment compared to whites. These differences narrowed over time, and full-time employment levels for Blacks and Hispanics rebounded to prepandemic standards by 2023. However, disparities in work arrangements are substantial and persistent. After adjusting for socioeconomic factors and occupation type, female, Black, and Hispanic workers show a stronger preference for more WFH days than their employers offer or allow compared to male and white workers. Accordingly, they are significantly more likely to accept a pay cut of 5% or more for an additional WFH day per week. We detect a significant positive association between workplace/schedule flexibility and job satisfaction. This relationship is more pronounced for women, who exhibit higher job satisfaction when their WFH preferences are met compared to men. Employees with unfulfilled WFH preferences are more inclined to seek new job opportunities, exhibit lower mental health, and report worse work-life balance.
Key Findings
- The initial employment shock induced by the pandemic disproportionately affected minority workers, with Blacks and Hispanics significantly more likely to transition out of full-time employment than whites in 2020. This difference was short-lived as full-time employment among minorities returned to prepandemic levels in subsequent years.
- Women are more likely to work in WFH-amenable jobs than men, and this difference persists even conditional to socio-economic factors and occupation type. Blacks and Hispanics are significantly less likely than whites to have a job amenable to WFH. This gap is driven by differences in socioeconomic status and type of occupation.
- Preferences for WFH have generally increased over time. Female and minority workers are more likely to experience unmet WFH preferences as their number of preferred WFH days tends to be lower than the actual number of days they can work remotely. Consistent with these patterns, women and racial/ethnic minorities are willing to tolerate larger pay cuts in exchange for an additional WFH day per week.
- There exists a significant positive association between workplace/schedule flexibility and job satisfaction. This relationship is more pronounced for women, who report higher job satisfaction when their WFH preferences are met compared to men. Employees with unmet WFH preferences are more inclined to seek new job opportunities, exhibit lower mental health, and report worse work-life balance.
- The documented disparities in work arrangements by sex and race/ethnicity are likely to translate into disparities in workers’ well-being and job satisfaction.
Citation
Angrisani, Marco, Jeremy Burke, and Francisco Perez-Arce. 2023. “Racial, Ethnic, and Gender Disparities in Labor Market Outcomes in the Aftermath of the COVID-19 Pandemic.” Ann Arbor, MI. University of Michigan Retirement and Disability Research Center (MRDRC) Working Paper; MRDRC WP 2023-470. https://mrdrc.isr.umich.edu/publications/papers/pdf/wp470.pdf
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Paper ID
WP 2023-470Publication Type
Working Paper