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The COVID-19 shock on the labour market: poverty and inequality effects across Spanish regions

Author

Listed:
  • Juan C. Palomino
  • Juan G. Rodríguez
  • Raquel Sebastian

Abstract

The necessary social distancing to limit the spread of COVID-19 during the recent pandemic implies that regions with higher essentiality and teleworking levels have lower vulnerability to poverty and inequality, the opposite occurring in regions intensive in closed activities. Using the latest 2020 European Union Statistics on Income and Living Conditions, we estimate that in the absence of compensating measures, this shock can result in sizable but unequal increases in poverty (between 8.3 and 20.7 percentage points (p.p.)) and wage inequality (between 2.6 and 6.0 Gini points) across Spanish regions. Moreover, inequality between regions can rise, which would erode regional cohesion in Spain.

Suggested Citation

  • Juan C. Palomino & Juan G. Rodríguez & Raquel Sebastian, 2023. "The COVID-19 shock on the labour market: poverty and inequality effects across Spanish regions," Regional Studies, Taylor & Francis Journals, vol. 57(5), pages 814-828, May.
    • Handle: RePEc:taf:regstd:v:57:y:2023:i:5:p:814-828
    DOI: 10.1080/00343404.2022.2110227
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    Cited by:

    1. Nicholas Apergis & Francisco J. Delgado & Claudia Suárez‐Arbesú, 2025. "Inequality and poverty in Spain: Insights from a regional convergence analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 1707-1723, April.
    2. Vanina Adoriana Trifan & Komalpreet Kaur, 2022. "Understanding the Effects of the Russia-Ukraine Conflict on the Global Economy," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 180-184, September.

    More about this item

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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