Gender Gaps From Labor Market Shocks: Evidence from Denmark

Publication Date


Grant Type

Early Career Research Grant


This paper asks what are the effects of women’s and men’s job loss on future labor market outcomes. The literature provides several potential explanations for why there may exist substantial gender gaps following job loss. One important factor is the constraint that childcare responsibilities may impose on women’s labor market recovery. Much evidence shows that the arrival of children drives a wedge between men's and women’s labor market trajectories (Harkness and Waldfogel (2003); Angelov, Johansson and Lindahl (2016); Kleven, Landais and Søgaard (2019)). Various studies have documented that mothers are likely to change jobs at the arrival of their first child (Nielsen, Simonsen and Verner (2004); Hotz, Johansson and Karimi (2017)) stated that this likely leads to differences in willingness to commute and search-behavior (Borghorst, Mulalic and Van Ommeren (2021); Le Barbanchon, Rathelot and Roulet (2021); Fluchtmann et al. (2020)). Another important source for overall gender gaps is differences in human capital broadly defined to include education, sectorial occupation and other types of sorting in the labor market (Goldin (2014); Goldin and Katz (2016); Petersen and Morgan (1995); Card, Cardoso and Kline (2015); Gallen, Lesner and Vejlin (2019)). Gender differences in initial sorting might affect labor market recovery. In this paper, we will try to disentangle the roles of these two channels for recovery following job displacement.