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The unequal impact of the coronavirus pandemic: Evidence from seventeen developing countries

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  • Nicolas Bottan
  • Bridget Hoffmann
  • Diego Vera-Cossio

Abstract

The current coronavirus pandemic is an unprecedented public health challenge that is having a devastating economic impact on households. Using a sample of 230,540 respondents to an online survey from 17 countries in Latin America and the Caribbean, the study shows that the economic impacts are large and unequal: 45 percent of respondents report that a household member has lost their job and, among households owning small businesses, 59 percent of respondents report that a household member has closed their business. Among households with the lowest income prior to the pandemic, 71 percent report that a household member lost their job and 61 percent report that a household member has closed their business. Declines in food security and health are among the disproportionate impacts. The findings provide evidence that the current public health crisis will exacerbate economic inequality and provides some of the first estimates of the impact of the pandemic on the labor market and well-being in developing countries.

Suggested Citation

  • Nicolas Bottan & Bridget Hoffmann & Diego Vera-Cossio, 2020. "The unequal impact of the coronavirus pandemic: Evidence from seventeen developing countries," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-10, October.
    • Handle: RePEc:plo:pone00:0239797
    DOI: 10.1371/journal.pone.0239797
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    1. Fetzer, Thiemo & Witte, Marc & Hensel, Lukas & Jachimowicz, Jon M. & Haushofer, Johannes & Ivchenko, Andriy & Caria, Stefano & Elena Reutskaja & Roth, Christopher & Fiorin, Stefano & Gomez, Margarita , 2020. "Global Behaviors and Perceptions at the Onset of the COVID-19 Pandemic," CAGE Online Working Paper Series 472, Competitive Advantage in the Global Economy (CAGE).
    2. Fetzer, Thiemo & Witte, Marc & Hensel, Lukas & Jachimowicz, Jon M. & Haushofer, Johannes & Ivchenko, Andriy & Reutskaja, Elena & Roth, Christopher & Gomez, Margarita & Kraft-Todd, Gordon & Goetz, Frie, 2020. "Global Behaviors and Perceptions in the COVID-19 Pandemic," CEPR Discussion Papers 14631, C.E.P.R. Discussion Papers.
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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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