Unequal effects of the COVID-19 epidemic on employment: Differences by immigrant status and race/ethnicity

Abstract

The COVID-19 epidemic resulted in a dramatic contraction in employment in the U.S., but the effects of this contraction have been unevenly distributed. We examine differences in employment among foreign- and native-born workers by race/ethnicity during the course of the epidemic. We test individual fixed-effects models based on data from the monthly CPS panel from January 2020 to December 2021 adjusting for seasonality. Immigrant men and women experienced greater declines in employment than non-immigrants of the same race/ethnicity when both compared to native-born Whites, but their disadvantage were limited to the initial months of the epidemic. Ethnoracial and immigrant status disparities were substantially reduced by the fall of 2020, except for Hispanic immigrant men and women, who still experienced substantial employment gaps with their native-born White counterparts. Differences in family characteristics account for Hispanic immigrant women’s lower employment rates during the epidemic but do not appear to account for differences between Black and Asian women and native-born Whites. Observed disparities in employment by race/ethnicity and immigrant status cannot be fully explained by differences in education, the concentration of minority and immigrant workers in industries and occupations that suffered steeper employment declines, or regional differences in the intensity of the epidemic.