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The Distributional Impacts of Early Employment Losses from COVID-19

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  • Cho, Seung Jin
  • Winters, John V.

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," GLO Discussion Paper Series 554, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:554
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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.
    2. Stephen R. G. Jones & W. Craig Riddell, 1999. "The Measurement of Unemployment: An Empirical Approach," Econometrica, Econometric Society, vol. 67(1), pages 147-162, January.
    3. Simon Mongey & Laura Pilossoph & Alex Weinberg, 2020. "Which Workers Bear the Burden of Social Distancing?," NBER Working Papers 27085, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Vanda Almeida & Salvador Barrios & Michael Christl & Silvia De Poli & Alberto Tumino & Wouter van der Wielen, 2020. "Households' income and the cushioning effect of fiscal policy measures during the Great Lockdown," JRC Working Papers on Taxation & Structural Reforms 2020-06, Joint Research Centre (Seville site).
    2. 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).
    3. 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.
    4. Cho, Seung Jin & Lee, Jun Yeong & Winters, John V., 2020. "Employment Impacts of the COVID-19 Pandemic across Metropolitan Status and Size," IZA Discussion Papers 13468, Institute of Labor Economics (IZA).
    5. 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.
    6. 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.
    7. 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," GLO Discussion Paper Series 613, Global Labor Organization (GLO).
    8. 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.
    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," IZA Discussion Papers 13516, Institute of Labor Economics (IZA).
    10. 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.

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    More about this item

    Keywords

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

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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