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The Distributional Impacts of Early Employment Losses from COVID-19

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  • Cho, Seung Jin

    (Iowa State University)

  • Winters, John V.

    (Iowa State University)

Abstract

COVID-19 substantially decreased employment, but the effects vary among demographic and socioeconomic groups. We document the employment losses in April 2020 across various groups using the U.S. Current Population Survey. The unemployment rate understates employment losses. We focus on the percentage of the civilian population that is employed and at work. Young persons experienced the largest employment losses. Individuals with less education and lower family income experienced much larger employment losses than their more educated and higher income counterparts. Hispanics and blacks were more adversely affected than whites.

Suggested Citation

  • Cho, Seung Jin & Winters, John V., 2020. "The Distributional Impacts of Early Employment Losses from COVID-19," IZA Discussion Papers 13266, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13266
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    References listed on IDEAS

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    1. Shuaizhang Feng & Yingyao Hu, 2013. "Misclassification Errors and the Underestimation of the US Unemployment Rate," American Economic Review, American Economic Association, vol. 103(2), pages 1054-1070, April.
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    Cited by:

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    2. Vanda Almeida & Salvador Barrios & Michael Christl & Silvia Poli & Alberto Tumino & Wouter Wielen, 2021. "The impact of COVID-19 on households´ income in the EU," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 413-431, September.
    3. Marouani, Mohamed Ali & Minh, Phuong Le, 2020. "The first victims of Covid-19 in developing countries? The most vulnerable workers to the lockdown of the Tunisian economy," GLO Discussion Paper Series 581, Global Labor Organization (GLO).
    4. Ashwini Deshpande & Rajesh Ramachandran, 2020. "Is COVID-19 'The Great Leveler'? The Critical Role of Social Identity in Lockdown- induced Job Losses," Working Papers 34, Ashoka University, Department of Economics.
    5. Chen-Ti Chen & Tao Xiong & Wendong Zhang, 2020. "Large Hog Companies Gain from China's Ongoing African Swine Fever," Center for Agricultural and Rural Development (CARD) Publications apr-spring-2020-5, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    6. Seung Jin Cho & Jun Yeong Lee & John V. Winters, 2021. "Employment impacts of the COVID‐19 pandemic across metropolitan status and size," Growth and Change, Wiley Blackwell, vol. 52(4), pages 1958-1996, December.
    7. Hakan Yilmazkuday, 2020. "COVID‐19 and unequal social distancing across demographic groups," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(6), pages 1235-1248, December.
    8. Hakan Yilmazkuday, 2020. "Unequal unemployment effects of COVID-19 and monetary policy across U.S. States," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 4(S3), pages 45-53, December.
    9. Betcherman,Gordon & Giannakopoulos,Nicholas & Laliotis,Ioannis & Pantelaiou,Ioanna & Testaverde,Mauro & Tzimas,Giannis, 2020. "Reacting Quickly and Protecting Jobs : The Short-Term Impacts of the COVID-19 Lockdown on the Greek Labor Market," Policy Research Working Paper Series 9356, The World Bank.
    10. Xi He & Wendong Zhang, 2020. "Implications of Hong Kong's Special Status Revocation for Agricultural Trade between the United States, Hong Kong, and Mainland China," Center for Agricultural and Rural Development (CARD) Publications apr-spring-2020-2, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    11. Ahn, Kunwon & Lee, Jun Yeong & Winters, John V., 2020. "Employment Opportunities and High School Completion during the COVID-19 Recession," ISU General Staff Papers 202010190700001114, Iowa State University, Department of Economics.
    12. Eliason, Marcus, 2021. "The unequal(?) burden of unemployment in Sweden during the first wave of the COVID-19 pandemic," Working Paper Series 2021:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    13. Yulong Chen & Liyuan Ma & Peter F. Orazem, 2020. "Does Rural Broadband Expansion Encourage Firm Entry?," Center for Agricultural and Rural Development (CARD) Publications apr-spring-2020-4, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    14. Cho, Seung Jin & Lee, Jun Yeong & Winters, John V., 2020. "COVID-19 Employment Status Impacts on Food Sector Workers," ISU General Staff Papers 202006080700001107, Iowa State University, Department of Economics.
    15. Seung Jin Cho & Jun Yeong Lee & John V. Winters, 2020. "Rural Areas and Middle America See Smaller Employment Losses from COVID-19," Center for Agricultural and Rural Development (CARD) Publications apr-spring-2020-1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    16. Erick Rangel González & Irving Llamosas-Rosas & Sara Hutchinson Tovar, 2024. "Analysis of the initial effects of COVID-19 on jobs affiliated to IMSS, at the national and regional level, by sex and age groups," Working Papers 2024-08, Banco de México.
    17. Lee L. Schulz & Chad Hart, 2020. "Agriculture under the Specter of COVID-19," Center for Agricultural and Rural Development (CARD) Publications apr-spring-2020-3, Center for Agricultural and Rural Development (CARD) at Iowa State University.

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    More about this item

    Keywords

    COVID-19; coronavirus; pandemic; employment; job losses;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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