The market-reach of pandemics: Evidence from female workers in Ethiopia’s ready-made garment industry

Article by Christian Johannes Meyer et al. Vol. 137. World Development. October 14, 2020.

Article by Christian Johannes Meyer et al. Vol. 137. World Development.

October 14, 2020.

  • The employment of female workers in Ethiopia‚Äôs garment industry has changed dramatically due to a sharp drop in demand during the COVID-19 pandemic.
  • In our sample, 41 percent of respondents employed in January 2020 were put on leave or terminated by the time of our survey a few months later.
  • Migration appears to be a major coping mechanism, but many respondents report barriers. Most who have left the city desire to return if possible.
  • Levels of food insecurity are high; rates are higher for those currently still in the city where garment industry jobs are located.
  • Respondents are well informed about COVID-19; false beliefs or myths appear to be extremely uncommon.

In a globalised world, pandemics transmit impacts through markets. We document employment changes, coping strategies, and welfare of garment factory workers in Ethiopia’s largest industrial park during the early stages of the Coronavirus Disease 2019 pandemic. We field a phone survey of female workers during a two month period in which cases are rapidly rising globally, but not locally. Our data suggest significant changes in employment, high levels of migration away from urban areas to rural areas if women are no longer working, and high levels of food insecurity. These findings compel a research and policy focus on documenting and mitigating the market-reach of pandemics on low-income workers at the margins.

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