How Has Labor Demand Been Affected by the COVID-19 Pandemic? Evidence from Job Ads in Mexico

There is a concern among social scientists and policymakers that the COVID-19 crisis might permanently change nature of work. We study how labor demand in Mexico has been affected during pandemic by web scraping job ads from leading search website. As U.S., number vacancies declined sharply lockdown (38 percent). In April there was composition demand, wages dropped across board. By May, however, wage distribution occupation returned to their pre-pandemic levels. Overall, slight decline specific requirements (gender age), no required experience, temporary increase for low-skilled workers. Contrary expectations, opportunities telecommuting diminished pandemic. Using simple Oaxaca-Blinder decomposition, we find variation average advertised explained more higher proportion low-wage occupations than reduction paid particular occupations. sum, evidence significant or permanent Mexico.