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Inequality in the impact of the coronavirus shock: Evidence from real time surveys

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  • Adams-Prassl, Abi
  • Boneva, Teodora
  • Golin, Marta
  • Rauh, Christopher

Abstract

We present real time survey evidence from the UK, US and Germany showing that the immediate labor market impacts of Covid-19 differ considerably across countries. Employees in Germany, which has a well-established short-time work scheme, are substantially less likely to be affected by the crisis. Within countries, the impacts are highly unequal and exacerbate existing inequalities. Workers in alternative work arrangements and who can only do a small share of tasks from home are more likely to have lost their jobs and suffered falls in earnings. Women and less educated workers are more affected by the crisis.

Suggested Citation

  • Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2020. "Inequality in the impact of the coronavirus shock: Evidence from real time surveys," Journal of Public Economics, Elsevier, vol. 189(C).
  • Handle: RePEc:eee:pubeco:v:189:y:2020:i:c:s0047272720301092
    DOI: 10.1016/j.jpubeco.2020.104245
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    More about this item

    Keywords

    Recessions; Inequality; Labor market; Job loss; Furlough; Short-time work; Coronavirus; Covid-19; Working from home; Gender gap;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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