Gender Gaps From Labour Market Shocks

Many workers will face unemployment at some point during their careers, and research shows that job loss can lead to persistently lower earnings. But that research is chiefly about men. This column studies plant closures in Denmark to estimate gender gaps in labour market outcomes. Immediately following job loss, women face a 40–45% greater risk of unemployment than men and lose a larger share of their earnings. Differences in labour market experience and education explain less than half the gap; the unequal division of childcare responsibilities helps explain the rest.