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Full-Text Articles in Social and Behavioral Sciences
Impacts Of The Covid-19 Pandemic And The Cares Act On Earnings And Inequality, Guido Matias Cortes, Eliza C. Forsythe
Impacts Of The Covid-19 Pandemic And The Cares Act On Earnings And Inequality, Guido Matias Cortes, Eliza C. Forsythe
Upjohn Institute Working Papers
Using data from the Current Population Survey (CPS), we show that the Covid-19 pandemic led to a loss of aggregate real labor earnings of more than $250 billion between March and July 2020. By exploiting the panel structure of the CPS, we show that the decline in aggregate earnings was entirely driven by declines in employment; individuals who remained employed did not experience any atypical earnings changes. We find that job losses were substantially larger among workers in low-paying jobs. This led to a dramatic increase in inequality in labor earnings during the pandemic. Simulating standard unemployment benefits and Unemployment …
The Heterogeneous Labor Market Impacts Of The Covid-19 Pandemic, Guido Matias Cortes, Eliza C. Forsythe
The Heterogeneous Labor Market Impacts Of The Covid-19 Pandemic, Guido Matias Cortes, Eliza C. Forsythe
Upjohn Institute Working Papers
We study the distributional consequences of the Covid-19 pandemic’s impacts on employment. Using CPS data on stocks and flows, we show that the pandemic has exacerbated pre-existing inequalities. Although employment losses have been widespread, they have been substantially larger in lower-paying occupations and industries. Individuals from disadvantaged groups, such as Hispanics, younger workers, those with lower levels of education, and women, have suffered both larger increases in job losses and larger decreases in hiring rates. Occupational and industry affiliation can explain only part of the increased job losses among these groups.