Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279115 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16417
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper examines the subjective treatment effects of a negative shock created by the COVID-19 pandemic on the labour market outcomes of young adults in India, Peru, and Vietnam. We leverage subjective counterfactual outcomes at the individual-level that were purposely collected from over 7,000 individuals to this aim. Our findings suggest that the shock denied employment opportunities and reduced earnings. On average, the pandemic reduced monthly earnings by 19.4% and employment levels by 17.5% in our three-country-sample. Country-specific magnitudes are lowest for India and highest for Vietnam. However, these average effects belie that a substantial proportion of individuals, particularly those from disadvantaged backgrounds, are pushed into employment by the pandemic. This frequently comes at the expense of their education, hinting at youth labour acting as a buffer against transitory shocks. According to our findings, the perceived effects of the pandemic on labour market outcomes carry important implications for young people's well-being and behaviour. Individuals who are denied employment display significantly higher rates of anxiety, lower rates of COVID-19 vaccination, and lower desired fertility.
Subjects: 
subjective treatment effects
labour market
COVID-19
youth
developing countries
JEL: 
J21
J11
C21
C83
D84
Document Type: 
Working Paper

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