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Household Income and Spending in the United States During the 1918 Influenza Pandemic

Author

Listed:
  • Fourie, Johan

    (Department of Economics, Stellenbosch University, South Africa)

  • Norling, Johannes

    (Department of Economics, Mount Holyoke College, United States)

Abstract

How did the 1918 influenza outbreak, the deadliest pandemic of the twentieth century, affect household income and spending in the United States? Using the 1917–1919 BLS cost of living survey, we compare households in 99 cities observed at different stages of the pandemic. We find a six percent decrease in real income, driven by cities with higher mortality. Men’s wages fell, but more women worked. People spent less on nondurable goods and services, about the same on durables, and more on medicine. Spending varied by region, age, and affluence. Governmentimposed non-pharmaceutical interventions had little correlation with consumer behavior.

Suggested Citation

  • Fourie, Johan & Norling, Johannes, 2021. "Household Income and Spending in the United States During the 1918 Influenza Pandemic," CAGE Online Working Paper Series 571, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:571
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp571.2021.pdf
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    More about this item

    Keywords

    Spanish flu; Pandemic; Income; Spending JEL Classification: N32; I18;
    All these keywords.

    JEL classification:

    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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