Abstract
In this paper, we provide causal evidence of the immediate and near-term impact of stringent COVID-19 lockdown policies on employment outcomes, using Ghana as a case study. We take advantage of a specific policy setting, in which strict stay-at-home orders were issued and enforced in two spatially delimited areas, bringing Ghana's major metropolitan centres to a standstill, while in the rest of the country less stringent regulations were in place. Using a difference-in-differences design, we find that the 3-week lockdown had a large and significant immediate negative impact on employment in the treated districts, particularly among workers in informal self-employment. While the gap in employment between the treated and control districts had narrowed 4 months after the lockdown was lifted, we detect a persistent nationwide decline in both earnings and employment, jeopardising particularly the livelihoods of small business owners mainly operating in the informal economy.
Original language | English |
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Pages (from-to) | II10-II33 |
Journal | Journal of African Economies |
Volume | 32 |
DOIs | |
Publication status | Published - 1 Apr 2023 |
Externally published | Yes |
Keywords
- COVID-19
- Ghana
- employment
- informal economy
- lockdown