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Inequality and the COVID-19 Crisis in the United Kingdom

Author

Listed:
  • Jonathan Cribb

    (Institute for Fiscal Studies, London, United Kingdom)

  • Monica Costa Dias

    (School of Economics, University of Bristol, Bristol, United Kingdom)

  • Richard Blundell

    (Department of Economics, University College London, London, United Kingdom)

  • Robert Joyce

    (Institute for Fiscal Studies, London, United Kingdom)

  • Thomas Wernham

    (Institute for Fiscal Studies, London, United Kingdom)

  • Tom Waters

    (Institute for Fiscal Studies, London, United Kingdom)

  • Xiaowei Xu

    (Institute for Fiscal Studies, London, United Kingdom)

Abstract

We review the effects of the COVID-19 pandemic on inequalities in education, the labor market, household living standards, mental health, and wealth in the United Kingdom. The pandemic has pushed up inequalities on several dimensions. School closures, in particular, disrupted the learning of poorer children, leading to lower attainment. Mental health worsened for those groups (women and younger adults) who had poorer mental health pre-pandemic. Lockdowns and social distancing particularly reduced the ability of younger, lower-earning, and less educated people to work. However, job-support programs combined with the expanded welfare system meant that, if anything, disposable income inequality fell. Rising house prices have benefited people around the middle of the wealth distribution. In the longer term, lower work experience and training for the less educated and missed schooling—particularly among children from more deprived families—could push up human capital inequalities and reduce social mobility.

Suggested Citation

  • Jonathan Cribb & Monica Costa Dias & Richard Blundell & Robert Joyce & Thomas Wernham & Tom Waters & Xiaowei Xu, 2022. "Inequality and the COVID-19 Crisis in the United Kingdom," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 607-636, August.
    • Handle: RePEc:anr:reveco:v:14:y:2022:p:607-636
    DOI: 10.1146/annurev-economics-051520-030252
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    Citations

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    Cited by:

    1. Thomas F Crossley & Paul Fisher & Hamish Low & Peter Levell, 2023. "A year of COVID: the evolution of labour market and financial inequalities through the crisis," Oxford Economic Papers, Oxford University Press, vol. 75(3), pages 589-612.
    2. Chiara Burlina & Andrés Rodríguez-Pose, 2024. "Inequality, poverty, deprivation and the uneven spread of COVID-19 in Europe," Regional Studies, Taylor & Francis Journals, vol. 58(2), pages 263-284, February.
    3. Wu, Xuepin & Ma, Yongjun, 2023. "Research on the comparison effect of urban residents' consumption," Journal of Business Research, Elsevier, vol. 160(C).
    4. Tao Lian & Shamsheer ul Haq & Pomi Shahbaz & Lei Zhao & Muhammad Nadeem & Babar Aziz, 2022. "Changing Food Patterns during the Pandemic: Exploring the Role of Household Dynamics and Income Stabilization Strategies," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    5. Sarah Cattan & Christine Farquharson & Sonya Krutikova & Andrew McKendrick & Almudena Sevilla, 2023. "Parental labour market instability and children's mental health during the pandemic," IFS Working Papers W23/21, Institute for Fiscal Studies.
    6. Enza Simeone, 2023. "Inequality in health status during the COVID-19 in the UK: does the impact of the second lockdown policy matter?," Working Papers 661, ECINEQ, Society for the Study of Economic Inequality.
    7. Vogtenhuber, Stefan & Steiber, Nadia & Mühlböck, Monika, 2023. "Got used to make less: the lasting earnings losses of COVID-19 short-time work," SocArXiv p2qvh, Center for Open Science.

    More about this item

    Keywords

    inequality; COVID-19 pandemic; education; living standards; wealth;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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