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Inequality in the Spanish Labor Market During the COVID-19 Crisis

Author

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  • Ana Lariau
  • Lucy Qian Liu

Abstract

We analyze the differential impact of the COVID-19 crisis on the Spanish labor market across population groups, as well as its implications for income inequality. The main finding is that young, less educated, and low skilled workers, as well as women are the most affected by the COVID-19 shock in terms of job loss rates. The differential impacts were especially acute at the height of the pandemic in 2020 and remain robust after taking into account the heterogeneity of sector characteristics. Given that these vulnerable groups were positioned in the lower end of the income distribution before the crisis, we hypothesize that income inequality likely has increased due to the pandemic. Policies aiming at reducing inequality in the labor market need to go beyond measures that target the hardest-hit sectors and support the vulnerable groups more directly.

Suggested Citation

  • Ana Lariau & Lucy Qian Liu, 2022. "Inequality in the Spanish Labor Market During the COVID-19 Crisis," IMF Working Papers 2022/018, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2022/018
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    Cited by:

    1. Shuoyu Fang & Li Zou, 2023. "Narratives of Women and Gender Relations in Chinese COVID-19 Frontline Reports in 2020," IJERPH, MDPI, vol. 20(5), pages 1-17, February.
    2. Seghezzi, Francesco & Serrani, Lavinia & Negri, Stefania & Virgili, Valeria, 2023. "DEFEN-CE: Social Dialogue in Defence of Vulnerable GroupsinPost-COVID-19 LabourMarkets. Report on Italy and Spain," SocArXiv v3zt7, Center for Open Science.
    3. Maite Blázquez & Ainhoa Herrarte & Ana I. Moro Egido, 2022. "Gender differences on the labor market transitions during the COVID-19 pandemic in Spain. The role of teleworking," ThE Papers 22/17, Department of Economic Theory and Economic History of the University of Granada..

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