Drivers of Income Inequality during COVID-19 Pandemic in Jordan

The COVID-19 pandemic is a global crisis that has added additional challenges and burdens on households, workers and governments. Using the COVID-19 MENA Monitor Household Survey, conducted by the Economic Research Forum, the present paper aims to assess the impact of COVID-19 crisis on income in Jordan. Logistic regressions are estimated to examine the impact of the individuals and households’ characteristics on the likelihood of experiencing decline in household’s income. Individuals working in hard hit sectors and vulnerable groups such as youth, women, poor households and those working informally are more likely to lose their income. Other vulnerable groups include individuals working in hard-hit sectors, those who were suspended and individuals whose wage payment had been decreased. These negative drawbacks of the pandemic on income and employment are expected to increase income inequalities in Jordan between the different socio-economic groups. As a response, targeted social protection programs, carefully designed to include vulnerable households experiencing job and income loss during the crisis, are highly required.