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The Fall in Income Inequality during COVID-19 in Five European Countries

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  • Andrew E Clark

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Conchita d'Ambrosio

    (University of Luxembourg [Luxembourg])

  • Anthony Lepinteur

    (University of Luxembourg [Luxembourg])

Abstract

We here use panel data from the COME-HERE survey to track income inequality during COVID-19 in France, Germany, Italy, Spain and Sweden. Relative inequality in equivalent household disposable income among individuals changed in a hump-shaped way over 2020. An initial rise from January to May was more than reversed by September. Absolute inequality also fell over this period. As such, policy responses may have been of more benefit for the poorer than for the richer.

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  • Andrew E Clark & Conchita d'Ambrosio & Anthony Lepinteur, 2021. "The Fall in Income Inequality during COVID-19 in Five European Countries," PSE Working Papers halshs-03185534, HAL.
    • Handle: RePEc:hal:psewpa:halshs-03185534
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03185534
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    Cited by:

    1. Andrew Clark & Conchita D'Ambrosio & Anthony Lepinteur & Giorgia Menta, 2022. "Pandemic Policy and Individual Income Changes across Europe," Working Papers 600, ECINEQ, Society for the Study of Economic Inequality.
    2. Andrej Cupak & Martin Cesnak & Jan Klacso & Martin Suster, 2021. "Fates of indebted households during the Corona crisis: Survey results from Slovakia," Working and Discussion Papers OP 2/2021, Research Department, National Bank of Slovakia.
    3. Ainaa, Carmen & Brunetti, Irene & Mussida, Chiara & Scicchitano, Sergio, 2021. "Who lost the most? Distributive effects of COVID-19 pandemic," GLO Discussion Paper Series 829, Global Labor Organization (GLO).
    4. Astarita, Caterina & Alcidi, Cinzia, 2022. "Did the COVID-19 pandemic impact income distribution?," MPRA Paper 113851, University Library of Munich, Germany.
    5. Andrew E. Clark & Anthony Lepinteur, 2022. "Pandemic Policy and Life Satisfaction in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(2), pages 393-408, June.
    6. Waldenström, Daniel & Angelov, Nikolay, 2021. "COVID-19 and Income Inequality: Evidence from Monthly Population Registers," Working Paper Series 1396, Research Institute of Industrial Economics.
    7. Olga Cantó & Francesco Figari & Carlo V. Fiorio & Sarah Kuypers & Sarah Marchal & Marina Romaguera‐de‐la‐Cruz & Iva V. Tasseva & Gerlinde Verbist, 2022. "Welfare Resilience at the Onset of COVID‐19 Pandemic in a Selection of European Countries: Impact on Public Finance and Household Incomes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(2), pages 293-322, June.
    8. Abigail Hurwitz & Olivia S. Mitchell & Orly Sade, 2021. "Longevity Perceptions and Saving Decisions during the COVID-19 Outbreak: An Experimental Investigation," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 297-301, May.
    9. Michael Christl & Silvia De Poli & Francesco Figari & Tine Hufkens & Chrysa Leventi & Andrea Papini & Alberto Tumino, 2022. "Monetary compensation schemes during the COVID-19 pandemic: Implications for household incomes, liquidity constraints and consumption across the EU," JRC Working Papers on Taxation & Structural Reforms 2022-03, Joint Research Centre (Seville site).
    10. Alina CIUREA (MECA), 2022. "Impact of European Union Social Policy during Pandemic on Household Income," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 117-124.
    11. Narayan,Ambar & Cojocaru,Alexandru & Agrawal,Sarthak & Bundervoet,Tom & Davalos,Maria Eugenia & Garcia,Natalia & Lakner,Christoph & Mahler,Daniel Gerszon & Montalva Talledo,Veronica Sonia & Ten,Andrey, 2022. "COVID-19 and Economic Inequality : Short-Term Impacts with Long-Term Consequences," Policy Research Working Paper Series 9902, The World Bank.
    12. Braband, Carsten & Consiglio, Valentina Sara & Grabka, Markus M. & Hainbach, Natascha & Königs, Sebastian, 2022. "Disparities in Labour Market and Income Trends during the First Year of the COVID-19 Crisis – Evidence from Germany," IZA Discussion Papers 15475, Institute of Labor Economics (IZA).
    13. Giovanni Gallo & Silvia Granato & michele Raitano, 2022. "Heterogeneous effects of the Covid-19 crisis on Italian workers’ incomes: the role played by jobs routinization and teleworkability," Center for the Analysis of Public Policies (CAPP) 0180, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    14. Stefanie Stantcheva, 2022. "Inequalities in the Times of a Pandemic," NBER Working Papers 29657, National Bureau of Economic Research, Inc.
    15. Adermon, Adrian & Laun, Lisa & Lind, Patrik & Olsson, Martin & Sauermann, Jan & Sjögren , Anna, 2022. "Earnings losses and the role of the welfare state during the COVID-19 pandemic: evidence from Sweden," Working Paper Series 2022:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Michael Dauderstädt, 2022. "International Inequality and the COVID-19 Pandemic," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(1), pages 40-46, January.
    17. Mahler,Daniel Gerszon & Yonzan,Nishant & Lakner,Christoph, 2022. "The Impact of COVID-19 on Global Inequality and Poverty," Policy Research Working Paper Series 10198, The World Bank.
    18. Zimpelmann, Christian & Gaudecker, Hans-Martin von & Holler, Radost & Janys, Lena & Siflinger, Bettina, 2021. "Hours and income dynamics during the Covid-19 pandemic: The case of the Netherlands," Labour Economics, Elsevier, vol. 73(C).
    19. Michael Christl & Silvia De Poli & Dénes Kucsera & Hanno Lorenz, 2022. "COVID-19 and (gender) inequality in income: the impact of discretionary policy measures in Austria," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 158(1), pages 1-17, December.
    20. Florian Dorn & Berit Lange & Martin Braml & David Gstrein & John L.Z. Nyirenda & Patrizio Vanella & Joachim Winter & Clemens Fuest & Gérard Krause, 2022. "The Challenge of Estimating the Direct and Indirect Effects of Covid-19 Interventions —Toward an Integrated Economic and Epidemiological Approach," CESifo Working Paper Series 10085, CESifo.
    21. Amarante, Verónica, 2022. "Fortalecimiento de los sistemas de protección social de la región: aprendizajes a partir de la pandemia de COVID-19," Documentos de Proyectos 47830, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    22. Atuesta, Bernardo & Van Hemelryck, Tamara, 2023. "Emergency social protection against the impacts of the pandemic in Latin America and the Caribbean: evidence and lessons learned for universal, comprehensive, sustainable and resilient social protecti," Documentos de Proyectos 48696, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    23. Sangyup Choi & Jeeyeon Phi, 2022. "Impact of Uncertainty Shocks on Income and Wealth Inequality," Working papers 2022rwp-196, Yonsei University, Yonsei Economics Research Institute.
    24. Giorgia Menta, 2021. "Poverty in the COVID-19 Era: Real-time Data Analysis on Five European Countries," Research on Economic Inequality, in: Research on Economic Inequality: Poverty, Inequality and Shocks, volume 29, pages 209-247, Emerald Group Publishing Limited.
    25. Frost, Jon & Gambacorta, Leonardo & Gambacorta, Romina, 2022. "On the nexus between wealth inequality, financial development and financial technology," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 429-451.

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    More about this item

    Keywords

    COVID-19; COME-HERE; Income Inequality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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