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The Unequal Impact of the Coronavirus Pandemic: Evidence from Seventeen Developing Countries

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  • [{uri:http://thesaurus.iadb.org/idbthesauri/202074950390917426525233,value:Bottan, Nicolas L.},{uri:http://thesaurus.iadb.org/idbthesauri/b9e71a3f-18c4-40a2-bef5-b773d499fe01,value:Hoffmann, Bridget},{uri:http://thesaurus.iadb.org/idbthesauri/4c049fec-0b7f-41b4-8c6d-2699c7f4d011,value:Vera-Cossio, Diego A.}]

Abstract

The current coronavirus pandemic is an unprecedented public health challenge that has devastating economic impacts for households. Using a sample of 230,540 respondents to online surveys in 17 countries in Latin America and the Caribbean, we show that the economic impacts are large and unequal: 45% of respondents report that a household member lost a job, and among households owning small businesses, 59% of respondents report that a household member closed their business. Among households with the lowest income prior to the pandemic, 71% report that a household member lost their job and 61% report that a household member closed their business. Declines in food security and healthiness are among the disproportionate impacts. Our results provide evidence that the current public health crisis will exacerbate economic inequality, and they are among the rst estimates of the labor market and wellbeing impacts of the pandemic in developing countries.

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  • [{uri:http://thesaurus.iadb.org/idbthesauri/202074950390917426525233,value:Bottan, Nicolas L.},{uri:http://thesaurus.iadb.org/idbthesauri/b9e71a3f-18c4-40a2-bef5-b773d499fe01,value:Hoffmann, Bridget},, 2020. "The Unequal Impact of the Coronavirus Pandemic: Evidence from Seventeen Developing Countries," IDB Publications (Working Papers) 10582, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:10582
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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).
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    Cited by:

    1. Nora Lustig & Guido Neidhöfer & Mariano Tommasi, 2020. "Short and Long-Run Distributional Impacts of COVID-19 in Latin America," Working Papers 2013, Tulane University, Department of Economics.
    2. Nora Lustig & Valentina Martinez Pabon, 2020. "The Impact of COVID-19 Economic Shock on Inequality and Poverty in Mexico," Working Papers 2014, Tulane University, Department of Economics.
    3. Nora Lustig & Valentina Martinez Pabon & Federico Sanz & Stephen D. Younger, 2020. "The Impact of COVID-19 Lockdowns and Expanded Social Assistance on Inequality, Poverty and Mobility in Argentina, Brazil, Colombia and Mexico," Working Papers 558, ECINEQ, Society for the Study of Economic Inequality.
    4. Nora Lustig & Valentina Martinez Pabon & Federico Sanz & Stephen D. Younger, 2020. "The Impact of COVID-19 Lockdowns and Expanded Social Assistance on Inequality, Poverty and Mobility in Argentina, Brazil, Colombia and Mexico," Working Papers 2012, Tulane University, Department of Economics.
    5. Andrew E. Clark & Conchita D'Ambrosio & Anthony Lepinteur, 2020. "The Fall in Income Inequality during COVID-19 in Five European Countries," Working Papers 565, ECINEQ, Society for the Study of Economic Inequality.
    6. Francis de Véricourt, & Huseyin Gurkan, & Shouqiang Wang,, 2020. "Informing the public about a pandemic," ESMT Research Working Papers ESMT-20-03, ESMT European School of Management and Technology.

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    More about this item

    Keywords

    Labor markets; Inequality; Public Health; Coronavirus Pandemic;

    JEL classification:

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

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