June 2020 COVID-19 IMPACTS ON WOMEN FACTORY WORKERS IN ETHIOPIA GENDER INNOVATION POLICY INITIATIVE RESULTS FROM HIGH-FREQUENCY PHONE SURVEYS FOR ETHIOPIA The Gender Innovation Policy Authors: Kehinde Ajayi, Niklas Buehren, Menaal Ebrahim, and Adiam Hailemicheal Initiative for Ethiopia (GIPIE) is a country-level unit of the Africa Gender Innovation Lab KEY MESSAGES (GIL) based in the World • As part of the World Bank Group’s analytical work program on Bank Ethiopia Country Office. “More, better, and more inclusive jobs: Preparing for successful GIPIE aims to increase take- industrialization in Ethiopia” (funded by the UK Department for up of effective policies and International Development), a team of researchers from the World programming to address the underlying causes of gender Bank’s Gender Innovation Policy Initiative for Ethiopia (GIPIE) is inequality in Ethiopia. GIPIE deploying high-frequency phone surveys among women factory works towards this goal in three workers at Bole Lemi Industrial Park to fill critical evidence gaps on main ways. First, GIPIE identifies the impact of the COVID-19 pandemic. The first two waves of data were and prioritizes key constraints collected between late March and late May 2020 and reveal an evolution in faced by women, and how these the employment status, earnings, and expectations of respondents over time. challenges may hinder progress towards national development • In the first month of the pandemic (at the end of April 2020), worker goals. Second, GIPIE generates retention remained a challenge due to a combination of COVID-19 evidence on the extent to and non-COVID-19 related factors. Only 44 percent of respondents who which programs and policies started their jobs at the factories were still working, but about 20 percent are successfully addressing these constraints by designing, had already stopped working before COVID-19 restrictions were introduced. experimenting, and evaluating A month later, only half of those working were regularly going to the factory, possible solutions using rigorous whereas the other half reported being temporarily off work due to COVID-19 impact evaluations. Third, related measures. GIPIE equips policymakers with state-of-the-art evidence to strengthen programs and This work has been funded in policies, ultimately aiming to part by the UK Department for maximize impact on women’s International Development. economic empowerment. http://www.worldbank.org/en/programs/africa-gender-innovation-lab • In May 2020, factory workers were earning workers in Ethiopia. The sample stems from a registry more than they did in April and almost twice of job applicants sourced by the Competitiveness and as much as women not working at factories Job Creation (CJC) Project in Ethiopia who applied to (either permanently or temporarily). Those who work at Bole Lemi Industrial Park between December never accepted factory job offers and workers who 2019 and March 2020. This brief reports on the first left their factory jobs permanently or temporarily two waves of data collected between late March and (we refer to this group as non-factory workers) have late May 2020, showing the evolution of this sample become less optimistic about finding work across of female workers’ employment status, earnings, and the two waves.1 expectations over the course of the pandemic.2 Due to the size of the sample and the fact that it only includes • Most women factory workers who left their jobs recent hires at the Bole Lemi Industrial Park, the results have not been able to find other employment may not generalize for the full population of women yet. In May 2020, nearly one-fifth of respondents factory workers in industrial parks. who left the factory managed to find another job, and more than half of them were actively searching for jobs. However, COVID-19 restrictions are preventing many from even seeking jobs. BOX 1: PROFILE OF FACTORY JOB APPLICANTS MOTIVATION The average respondent is young, single, and As the COVID-19 pandemic continues to disrupt from a relatively small household. All of our study international supply chains and local economies, participants are women, and the average age of the workers employed in export-oriented industries are likely respondents is 22 years old. Close to 30 percent to experience both demand and supply shocks due to of the sample are married and only 6 percent have the crisis. In Ethiopia, a slowed global economy could children. The respondents also mainly come from pose a significant threat to the country’s industrial parks small households, with an average size of three and their factories in the female-concentrated garment members. They live with their parents (39 percent), industry, forcing them to lay off workers or even shut partner (24 percent), friends or others (23 percent), or down their operations. by themselves (15 percent). The average respondent has completed eight years of schooling. Meanwhile, workers face their own set of constraints that could affect their decision to continue working at a factory, including fear of catching the virus, as well as additional household and care responsibilities and mobility restrictions, which may be more limiting for EMPLOYMENT AND WELFARE - WAVE 1 women than for men. Yet very little data already exist to While more than one-fifth of respondents reported document the challenges women face in the context of not working temporarily due to COVID-19, issues the COVID-19 pandemic. of low factory job retention among recent hires pre-dated the COVID-19 pandemic. Among To monitor the potential effects of the pandemic and candidates sourced for factory work, close to 23 support the design of evidence-based policy responses, percent never accepted the job offer or began the job.3 the Gender Innovation Policy Initiative for Ethiopia For the first wave of data collection from late March (GIPIE) is conducting a high-frequency phone survey to late April 2020 and about one month after the first on a sample of 323 recently hired female factory 1Factory workers refer to those who reported going to the factory all days in the previous week. Non-factory workers include those who never accepted or began their jobs at the factory, those who permanently left, and those who are temporarily off due to COVID-19. 2 The survey is designed as a panel survey, with recurring surveys every month for a total of six rounds. 3These offers were made in the months of December 2019 – March 2020. COVID-19-related restrictions were introduced, only 44 during the month of May 2020, only 22 percent of those percent of the candidates who began their jobs were who began their jobs, were still working at a factory job, working in a factory, while 29 percent had left their jobs with 34 percent permanently out of factory jobs and permanently, and 27 percent reported being off work 44 percent temporarily off work (Figure 2). Thus, 50 temporarily (Figure 1). Out of those who left their jobs 4 percent of those who were still employed in a factory permanently, approximately 65 percent left before the the previous month had left the factories, out of which first confirmed case of COVID-19 was registered in 80 percent had stopped going to work temporarily and Ethiopia.5 20 percent had left their jobs permanently. Factory workers were earning almost twice as While earnings slightly increased for those who much as workers who had left their factory jobs. 6,7 remained employed in the factories and for those Those still at their factory jobs earned an average of a who had left, factory workers are still earning 1023 Birr in the previous month, while those who left significantly more than non-factory workers. permanently and temporarily earned 581 and 491 Birr Factory workers experienced an earnings increase of 25 respectively. percent, and those who left factory work permanently or temporarily saw an increase of 30 percent and 34 percent respectively. This increase could be attributed EMPLOYMENT AND WELFARE - WAVE 2 to delayed payments from the first month of coronavirus After a second month, another 22 percent stopped restrictions.8 Still, factory workers made 70 percent going to work, but mostly temporarily. In Wave 2, more than workers who left the factories.9 FIGURE 1: JOB AND EARNING STATUS OF FIGURE 2: JOB AND EARNING STATUS OF RESPONDENTS, WAVE 1 RESPONDENTS, WAVE 2 Percentage of respondents who began their jobs (N=249, 233) 100% 1291 1200 1023 1000 80% 800 Earnings (Birr) 754 60% 660 44% 581 44% 600 40% 492 –22% 34% +17% +5% 400 2% 19% 20% 25% 22% 200 10% 0% 0 Working at Left job Not working Working at Left job Not working a factory (permanently) due to COVID a factory (permanently) due to COVID (temporarily) (temporarily) Left Work Pre-COVID Past Month’s Earnings Change from Previous Wave Past Month’s Earnings 4Workers are categorized as temporarily off or permanently off based on their answers for not working at the factory. Those who are temporarily off indicated that, whereas those who indicat- ed quitting and being fired were categorized as permanently off. 5This was calculated by taking the difference of the time elapsed between the respondent’s sourcing date to March 13th 2020 (first incident of COVID 19) and the self-reported duration she worked at the factory. 6Earnings include cash earnings from wages, profits or other earnings from own business or agricultural activities. 7 Difference is statistically significant. 8 About 10 percent of the sample reported 0 earnings in the first wave and positive earnings in the second wave, without a change in employment status. 9 Difference is statistically significant. The vast majority of those who are temporarily off Less than 20 percent of workers who had left the work were instructed by the factory to leave due to factories found another job, 50 percent are actively COVID-19 mitigation measures (Figure 3). For those who searching, and the rest have been discouraged from left permanently, most quit because of their own or family searching because of COVID-19 fears. About 22 health concerns, followed by unsatisfactory conditions and percent of those who left the factories permanently have benefits from the job. 10 While 7 percent were terminated, already found another job, compared to 9 percent of those most of them were let go before the pandemic and none who are off work temporarily (Figure 4). Additionally, almost of the respondents cited COVID-19 as a reason. About 80 half of both groups are actively searching for a job. Those percent of those who are temporarily off were asked by the who are not searching for jobs currently, report fear of factory to stay home, with the rest staying home voluntarily COVID-19 and lack of jobs due to COVID-19 as the main or because of other non-COVID reasons. 11 inhibiting factors. FIGURE 3: REASONS FOR NOT WORKING FIGURE 4: GETTING ANOTHER JOB, SEARCHING, AND AT THE FACTORY, WAVE 2 REASONS FOR NOT SEARCHING FOR JOBS, WAVE 2 Percentage of respondents who left factory jobs (N=236) Percentage of non-factory workers (N=251) 100% Left Temporarily Left Permanently Left Temporarily Left Permanently 83% 80% 60% 49% 46% 47% 40% 26% 22% Not looking for jobs 20% 18% 16% 15% 9% 12% 8% 7% 7% 9% 9% 6% 2% 1% 2% 2% 2% 1% 2% 0% ) D ns er ns ob sues ated ID ns ID ID ry e s re ob b VID OVI so hj OV so OV OV cto d m oblem ildca her j r jo y ( C O t o C D re a c o n c d w i t o r t i s e r m i n o f C r R e a n gC t o C the fa hibite p r / c h o t o the r ue VI fie sp ar t i ue h rk a n a n to lth T e ac o p ro h e a l t fac ave d n-CO Hea satis Tran Fe Oth ntr s d ur n t nd wo for Have d by l e N o U n f co f job r et s ba n al h old oking ke r y o o o u rs o s e As lunta ar ck gt ly/ h Pe ou Lo Fe La itin mi hh Vo Wa Fa wit s y Bu Health concerns aggregate underlying sickness, falling ill, family health responsibilities, as well as fear of contracting COVID. Unsatisfied with job includes low salary, poor working condi- 10  tions, and other factors related to the nature of the job. 11 Other non-COVID reasons include vacation, sick leave, and maternity. EMPLOYMENT AND WELFARE - FUTURE Respondents who are currently not employed in days (Figure 6).12 Those not working have become far less factories are less hopeful about securing work optimistic about working in the next 30 days over time. soon in comparison with the previous wave. Income expectations, on the other hand, are like those However, about 70 percent do expect an income in the observed in the previous wave. These women are perhaps next 30 days. Previously, over 60 percent of workers at adjusting their expectations about finding full-time jobs their factory jobs and workers who left their factory jobs given COVID-19 restrictions but may feel more optimistic expected to have regular full-time work in the next 7 days, about earnings from other means. This is also consistent 30 days, and 12 months (Figure 5). More than 60 percent with increased earnings in the second wave compared to of both groups also expected to receive an income in 30 the first wave. FIGURE 5: EXPECTATIONS OF WORKING, FIGURE 6: INCOME EXPECTATIONS, WAVE 1 AND WAVE 2 WAVE 1 AND WAVE 2 Percentage of respondents who expect to have Percentage of respondentswho expect to earn full-time work in the future (N=323, 303) some income in the future (N=323, 303) 100% Wave 1 Wave 2 91% 88% 91% 88% 85% 83% 80% 80% 77% 75% 75% 71% 66% 61% 60% 58% 53% 48% 41% 40% 39% 36% 26% 20% 0% 7 days 30 days 12 months 7 days 30 days 12 months 7 days 30 days 7 days 30 days Factory Non-Factory Factory Non-Factory Workers Workers Workers Workers Income includes wages, profits or other earnings from own business or agricultural activities. 12  BOX 2: COVID-19 RELATED BEHAVIORS, OPINIONS, AND WORRIES Respondents have been coping with the virus in different ways. Many of those still working reported having to spend their savings to cover added expenses (44 percent), and a few reported borrowing money, violating containment measures, and relying on help from family. Those not working in factories on the other hand, mostly borrowed money (27 percent) and looked for a job (22 percent), with some violating containment measures, selling assets, and temporarily migrating to cope with coronavirus impacts (Figure 7). FIGURE 7: COPING BEHAVIORS IN THE PAST 30 DAYS Percentage of workers (N=303) Violated containment measures Relied on help from family Sold assets Borrowed money Spent savings Found or looked for another job Temporarily migrated 0% 10% 20% 30% 40% 50% Factory Workers Non-Factory Workers FOR MORE INFORMATION, NEXT STEPS PLEASE CONTACT Data collection from the ongoing high-frequency phone survey of women factory Niklas Buehren workers in Bole Lemi Industrial Park will continue in the coming months, with nbuehren@worldbank.org recurring surveys every month for a total of 6 rounds. By tracking the impacts of Adiam Hailemicheal the COVID-19 pandemic, these data collection efforts aim to equip policymakers ahailemicheal@worldbank.org with timely, actionable data to better design and implement policy responses in support of Ethiopia’s women factory workers. Amy Copley acopley@worldbank.org Photo credit: Stephan Gladieu/The World Bank and Arne Hoel/The World Bank 1818 H St NW Washington, DC 20433 USA This work has been funded in part by the Umbrella Facility for Gender Equality (UFGE), which is a multi-donor trust fund administered by the World Bank to advance gender equality and women’s empowerment through experimentation and www.worldbank.org/africa/gil knowledge creation to help governments and the private sector focus policy and programs on scalable solutions with sustainable outcomes. The UFGE is supported with generous contributions from Australia, Canada, Denmark, Germany, Iceland, Latvia, the Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom, United States, and the Bill and Melinda Gates Foundation.