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Unintended Consequences of Lockdowns: Evidence from Domestic Helpers in Urban China |
Xiaobo He1( ), Fang Xiao2 |
1. School of Business, Shanghai University of International Business and Economics, Shanghai 201620, China; The Centre for Global Food and Resources, The University of Adelaide, Adelaide, South Australia 5005, Australia 2. School of Business, Shanghai University of International Business and Economics, Shanghai 201620, China |
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Abstract This paper addresses the reactions of domestic helpers to the Wuhan (Hubei Province) lockdown that began on January 23, 2020. We use a novel dataset containing the information of over 40,000 Chinese domestic helpers registered on a leading professional website from November 2019 to June 2020. The results indicate a declining pattern of short-term labor supply of domestic helpers across 11 major Chinese cities, which shows an increase in the expected monthly wage of domestic helpers in these cities. More importantly, using a difference-in-difference (DID) model, this paper provides some evidence on the existence of labor market discrimination against domestic helpers born in Hubei Province due to employers’ fear of infection.
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Keywords
2019 novel coronavirus disease (COVID-19)
pandemic
domestic helpers
urban
China
labor supply
expected wage
labor market
discrimination
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Issue Date: 06 January 2021
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