Gender Differences in Informal Labor-Market Resilience

Abstract This paper reports on the universe of garment-making-firm owners in a Ghanaian district capital during COVID-19 crisis. By July 2020, 80 percent both male- and female-owned firms were operational. However, pre-pandemic data show that selection into persistent closure differs by gender. Consistent with “cleansing effect” recessions highlighting presence marginal female entrepreneurs, remain closed past spring lockdown are negatively selected sales. The sales distributions survivors non-survivors significantly different from each other. Female non-operational exit to non-employment experience large decreases overall earnings. In contrast, persistently male-owned not firm characteristics. Instead, male 36 percentage points more likely than have another income-generating activity prior Male fully compensate for revenue losses their core businesses earnings these alternative activities. Taken together, evidence is most consistent differential underlying occupational choice fundamentals self-employed men women this context.