COVID-19 and Gender Gaps in Employment, Wages, and Work Hours: Lower Inequalities and Higher Motherhood Penalty

This paper investigates the dynamics and drivers of gender gaps in employment rates, wages, and work hours during the COVID-19 pandemic, relying on Estonian Labor Force Survey data for 2009–2020. We document that the pandemic has, if anything, reduced gender inequality in all three domains. The evolution of inequalities revealed cyclical pattern mirroring infection rate, with upswings largely driven by parenthood and gender segregation into industries. The results suggest that labor market penalties for women with young children and women employed in affected sectors may last longer than the pandemic, threatening to widen gender inequality in a long run.