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Financial vulnerability and the impact of COVID-19 on American households

Author

Listed:
  • Carol Bruce
  • Maeve E Gearing
  • Jill DeMatteis
  • Kerry Levin
  • Timothy Mulcahy
  • Jocelyn Newsome
  • Jonathan Wivagg

Abstract

In May 2020, Westat, in partnership with Stanford University School of Medicine, conducted a nationally-representative household survey of American attitudes and behaviors regarding COVID-19. In this article, we examine what the Coronavirus Attitudes and Behaviors Survey tells us about the impact of COVID-19 on financial status and how this impact varies by demographic characteristics, the presence of health risk factors, and financial status (including employment factors). The survey reveals significant inequality in financial impact, as those who were most financially vulnerable prior to the pandemic found themselves under greater financial strain, while those who were more financially secure have experienced a neutral or even positive impact of the pandemic on household finances. These findings have important implications for public policy as policymakers seek to target aid to those who need it most.

Suggested Citation

  • Carol Bruce & Maeve E Gearing & Jill DeMatteis & Kerry Levin & Timothy Mulcahy & Jocelyn Newsome & Jonathan Wivagg, 2022. "Financial vulnerability and the impact of COVID-19 on American households," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-11, January.
    • Handle: RePEc:plo:pone00:0262301
    DOI: 10.1371/journal.pone.0262301
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    References listed on IDEAS

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    1. Coibion, Olivier & Gorodnichenko, Yuriy & Weber, Michael, 2020. "Labor Markets During the Covid-19 Crisis: A Preliminary View," Department of Economics, Working Paper Series qt7rx7t91p, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Ray Boshara & Lowell R. Ricketts, 2020. "Which Families Are Most Vulnerable to an Income Shock such as COVID-19?," In the Balance, Federal Reserve Bank of St. Louis, May.
    3. Scott R. Baker & Robert A Farrokhnia & Steffen Meyer & Michaela Pagel & Constantine Yannelis, 2023. "Income, Liquidity, and the Consumption Response to the 2020 Economic Stimulus Payments," Review of Finance, European Finance Association, vol. 27(6), pages 2271-2304.
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    Cited by:

    1. Steimle, Samantha & Gassman-Pines, Anna & Ryan, Rebecca M., 2024. "The expanded Child Tax Credit and low-income families’ food insecurity: Associations across and within months of receipt," Children and Youth Services Review, Elsevier, vol. 164(C).

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