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Ladies first ? firm-level evidence on the labor impacts of the East Asian crisis

Author:	Hallward-Driemeier, Mary; Rijkers, Bob; Waxman, Andrew;	Collection Title:	Policy Research working paper ; no. WPS 5789Paper is funded by the Knowledge for Change Program (KCP)
Country:	East Asia and Pacific; Indonesia;	Date Stored:	2011/09/06
Document Date:	2011/09/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Industry and trade
Rel. Proj ID:	1W-Micro Dynamics And Macro Performance -- -- P104056;1W-Fpdce: Job Creation / Competitiveness -- -- P124215;	Region:	East Asia and Pacific
Report Number:	WPS5789	Sub Sectors:	General industry and trade sector
SubTopics:	Labor Markets; Labor Policies; Population Policies; Gender and Law; Gender and Development	TF No/Name:	TF058171-INVESTMENT CLIMATE'S CONTRIBUTION TO GROWTH THROUGH FIRM DYNAMICS AND A; TF090797-MACROECONOMIC EFFECTS OF ALLOCATIVE EFFICIENCY; TF097044-Women in Crisis; TF010008-KCP II - Industrial structure, productivity, growth and welfare; TF094566-KCP II COMPARABLE DISAGGREGATED CENSUS DATA ACROSS DEVELOPING COUNTRIE
Volume No:	1 of 1

Summary: In a crisis, do employers place the burden of adjustment disproportionately on female employees? Relying on household and labor force data, existing studies of the distributional impact of crises have not been able to address this question. This paper uses Indonesia's census of manufacturing firms to analyze employer responses and to identify mechanisms by which gender differences in impact may arise, notably differential treatment of men and women within firms as well as gender sorting across firms that varied in their exposure to the crisis. On average, women experienced higher job losses than their male colleagues within the same firm. However, the aggregate adverse effect of such differential treatment was more than offset by women being disproportionately employed in firms hit relatively less hard by the crisis. The null hypothesis that there were no gender differences in wage adjustment is not rejected. Analyzing how employer characteristics impact labor market adjustment patterns contributes to the understanding of who is vulnerable in volatile times.


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