Covid-19 Pandemic and Income Mobility in Iran

Document Type : Research Paper

Authors

Department/Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran.

10.22059/jte.2024.372837.1008898

Abstract

The COVID-19 pandemic has emerged as a profound global crisis with extensive impacts on social and economic structures worldwide. This study examines the shifts in income mobility within Iranian households, focusing particularly on those with employed women prior to the onset of the pandemic. Utilizing household income and expenditure data from 2017 to 2019, this research employs advanced econometric models such as the regression discontinuity design and transition matrix analysis to explore the economic repercussions of the pandemic. The findings reveal a significant disparity in income mobility between households with employed women and those with only employed men. Households with employed women experienced greater financial instability and a higher likelihood of descending into lower income brackets compared to their male counterparts. The pandemic disproportionately affected sectors with high female employment rates, such as the service industry, exacerbating the economic vulnerability of these households. In-depth analysis indicates that the closure of schools and childcare facilities, coupled with the downturn in service sector demand, are pivotal factors that intensified the economic decline for women in the workforce. These sectors traditionally employ a higher percentage of women, and the sudden reduction in demand has led to a notable increase in female unemployment rates, further impacting household income stability. In conclusion, The insights provided in this study not only contribute to a deeper understanding of the pandemic's impacts but also inform future policy-making aimed at fostering economic resilience and equality.

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References

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Journal of Economic Research (Tahghighat- E- Eghtesadi)
Volume 59, Issue 3
December 2024
Pages 363-385

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History

  • Receive Date: 18 February 2024
  • Revise Date: 01 August 2024
  • Accept Date: 28 December 2024

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