The effects of the Covid-19 pandemic on labor force participation of women working in the tourism sector for small businesses in Costa Rica

Abstract

Women’s employment has been disproportionately affected by the COVID-19 pandemic, which is why this study sought to understand the effects of said pandemic on female labor force participation in Costa Rica’s tourism industry. The study used qualitative and quantitative methods, including interviews and surveys. Results indicate that travel restrictions have negatively affected different sectors within the tourism industry, leading to higher unemployment levels that fundamentally affect women’s finances. Also, women’s mental health was affected by these conditions, particularly at the onset of the health crisis. While women’s employment was severely affected, findings show that many of them found alternative sources of income to sustain themselves and their families. Moreover, as supported by existing literature, this study demonstrates that unpaid work has intensified, especially for women with school-aged children, because of school closures. In 2021, tourism numbers improved, resulting in an increase in women’s paid work. Along with this, unpaid work was restored to pre-pandemic levels, and these developments improved women’s mental health. Also, this study discovered that policies, such as social protection schemes that safeguard gender equality in the workplace, are still lacking. This is because small businesses are not financially viable to hire their employees formally. As a result, employees at these micro and small businesses (which were less financially resilient before the pandemic) are even more susceptible to job losses during crises. This leaves them without income and without a safety net. Lastly, given these results, the study provides recommendations targeting to combat long-standing issues that hamper achieving gender equality.