Peterson Institute for International Economics
COVID-19 widens gender gap in labor force participation in some but not other advanced economies
Simeon Djankov and Eva (Yiwen) Zhang

Covid-19 and gender gap in labor force participation

This article describes how the gender gap in labor force participation has worsened as a result of the COVID-19 pandemic in several advanced economies and provide some reasons that may explain why Australia, Denmark, Norway, and the United Kingdom have been able to reduce that gap.

The gender gap in labor force participation in the third quarter of 2020 “was around 0.8% higher than in the first quarter of the year” in the economies of United States, Canada, Japan or South Korea. 

Two main reasons explain this performance according to the article:

  • Sectors hardest hit by the Covid-19 crisis are those with higher proportion of women such as retail stores, restaurants, and the hotel and hospitality business.
  • The increase of family responsibilities because of school clousures mainly fall on working mothers' shoulders

Countries such as Australia, Denmark, Norway, and the UK, contrary to that trend and not by accident, were able to reduce the gender gap in labor force participation by 0.5%t in the third quarter of 2020, which according to the authors could be explained by two main reasons:

  • Successful government support measures to protect those sectors where women are overrepresented (for instance in UK Businesses in the retail, hospitality, and leisure sectors companies are entitled to one-off cash grants of up to £25,000).
  • Government programs supporting childcare that helped parents to retain their jobs (for instance the Australian government provided free childcare to around one million families from April 6 to July 12).

Filter results

FILTER BY CATEGORIES()
BACK

Filter results

Categories

23/10/2025

According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.

International Monetary Fund
World Economic Outlook and Global Financial Stability reports, October 2025
15/10/2025

According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.

The European House- Ambrosetti
Europe’s Competitiveness at Crossroads: A Stocktaking one year after the Draghi and Letta Reports
15/10/2025

According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.

Instituto Español de Estudios Estratégicos
Revitalizar el espacio inversor iberoamericano con España como puente y país vertebrador con la Unión Europea
25/09/2025

According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience

European Central Bank, Francesca Faella and Alejandro Zamora-Pérez
Keep calm and carry cash: lessons on the unique role of physical currency across four crises
25/09/2025

According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.

Banco de España, Juan S. Mora-Sanguinetti
La complejidad normativa en España: un freno para las empresas y el crecimiento económico
17/09/2025

According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.

International Monetary Fund
Stablecoins, Tokens, and Global Dominance
17/09/2025

@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.

CEPS
EU simplification will fail without better governance: three necessary reforms to make sure it doesn’t fail
Judith Arnal
03/07/2025

According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.

Instituto de Estudios Económicos
Competitividad fiscal empresarial 2025
19/06/2025

According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.

Christine Lagarde, President of the ECB
Europe’s “global euro” moment
29/05/2025

According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.

Bank of Spain
Informe de Estabilidad Financiera. Primavera 2025
08/05/2025

McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.

Mckinsey 6 Company
Private capital: The key to boosting European competitiveness
24/04/2025

IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.

International Monetary Fund
Global Financial Stability report, April 2025
URL copied to clipboard