# **1. Introduction**

During 2020, the COVID-19 crisis had a significant and unprecedented negative impact on the global labor market. This was due to an economic and social shock that resulted in a 3.3%<sup>1</sup> global economic contraction. The labor market served as the main economic transmission channel to households. The International Labor Organization (ILO) estimated a reduction of 258 million hours worked for full-time jobs worldwide, equivalent to an 8.9% reduction in employment levels, affecting 135 million people (4%). The ILO study also found a sharp decline in the world's labor force participation, with over 100 million people leaving the workforce due to lockdowns and becoming economically inactive. Despite the economic recovery that started in 2021, the ILO forecasted that even in 2023 the employment recovery would still be underway.

The impact of the COVID-19 crisis on employment and participation has been uneven globally, affecting certain sociodemographic groups disproportionately. A cross-country study conducted by the International Monetary Fund (IMF) across 38 advanced and developing economies found that 50% and 66% of them experienced significant decreases in women's employment levels compared to men (Bluedorn et al., 2021). This is due to unfavorable changes in sectoral composition, which disproportionately affect women. A more recent study by the World Bank (2023) documents the impact of the shock in the Latin America and Caribbean region, showing that job losses had a significant negative impact on youth, low-educated individuals, informal workers and female workers, and that the recovery has been slower for these groups than for the rest.

This paper analyzes gender gaps in unemployment, labor participation, income, and hours worked in Colombia, considering key features of the pandemic and women's endowments. The study uses probabilistic models and standard decomposition methodologies to assess gender gaps and their drivers. It also offers a non-comprehensive view of national policies aimed at closing gender gaps in the labor market.

These are the five key conclusions drawn from the research. First, the economic recovery in 2021 did not close the pre-existing gender gaps, which were further exacerbated by the pandemic. This suggests that there are underlying structural factors that need to be addressed. Second, while the gender gap in labor income and hours worked narrowed during the pandemic, this was due to a sharp decline in the levels for men rather than significant progress for women. Third, the formal sector showed more recovery in labor demand for women than the informal sector, but women are still largely concentrated in the informal sector. Fourth, women with children and lower levels of education had worse indicators and wider gaps compared to men and women without children or with higher levels of education, and this situation worsened during the pandemic. Finally, although there are programs in Colombia aimed at reducing gender gaps, such as those promoting economic opportunities for women, there is a need to increase the focus on addressing barriers related to 1 Based on information by the World Bank from 80% of the economies in 2020.