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A year of COVID: the evolution of labour market and financial inequalities through the crisis

Author

Listed:
  • Thomas F Crossley
  • Paul Fisher
  • Hamish Low
  • Peter Levell
Abstract
We use high-quality UK panel data to document the extent that pre-existing labour market and financial inequalities were exacerbated by the pandemic between April 2020 and September 2021. Some inequalities worsened, others did not, and in some cases, initial widening of labour market inequalities was subsequently reversed. We find no evidence of an overall divergence in labour market outcomes by gender. Initial changes for ethnic minorities and the young were largely reversed by March 2021. Those in the top third of the long-run income distribution experienced income falls, but also increased saving. Net wealth increased not for only the affluent, but also for middle deciles of the long-run income distribution. These deciles were most protected by the furlough scheme. Those at the bottom of the income distribution were more likely to report a decline in net wealth over the year.

Suggested Citation

  • Thomas F Crossley & Paul Fisher & Hamish Low & Peter Levell, 2023. "A year of COVID: the evolution of labour market and financial inequalities through the crisis," Oxford Economic Papers, Oxford University Press, vol. 75(3), pages 589-612.
    • Handle: RePEc:oup:oxecpp:v:75:y:2023:i:3:p:589-612.
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    File URL: http://hdl.handle.net/10.1093/oep/gpac040
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    References listed on IDEAS

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    1. Hamish Low & Michaela Benzeval & Jon Burton & Thomas F. Crossley & Paul Fisher & Annette Jäckle & Brendan Read, 2020. "The Idiosyncratic Impact of an Aggregate Shock The Distributional Consequences of COVID-19," Economics Series Working Papers 911, University of Oxford, Department of Economics.
    2. Gema Zamarro & María J. Prados, 2021. "Gender differences in couples’ division of childcare, work and mental health during COVID-19," Review of Economics of the Household, Springer, vol. 19(1), pages 11-40, March.
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    4. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2020. "Inequality in the impact of the coronavirus shock: Evidence from real time surveys," Journal of Public Economics, Elsevier, vol. 189(C).
    5. Adams-Prassl, A. & Boneva, T. & Golin, M & Rauh, C., 2020. "Inequality in the Impact of the Coronavirus Shock: New Survey Evidence for the UK," Cambridge Working Papers in Economics 2023, Faculty of Economics, University of Cambridge.
    6. Benzeval, Michaela & Burton, Jonathan & Crossley, Thomas F. & Fisher, Paul & Gardiner, Colin & Jäckle, Annette & Moore, Jamie, 2021. "High frequency online data collection in an annual household panel study: some evidence on bias prevention and bias adjustment," Understanding Society Working Paper Series 2021-03, Understanding Society at the Institute for Social and Economic Research.
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    12. Raj Chetty & John N Friedman & Michael Stepner & Opportunity Insights Team & Camille Baker & Harvey Barnhard & Matt Bell & Gregory Bruich & Tina Chelidze & Lucas Chu & Westley Cineus & Sebi Devlin-Fol, 2024. "The Economic Impacts of COVID-19: Evidence from a New Public Database Built Using Private Sector Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 829-889.
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    19. Crossley, Thomas F. & Fisher, Paul & Low, Hamish, 2021. "The heterogeneous and regressive consequences of COVID-19: Evidence from high quality panel data," Journal of Public Economics, Elsevier, vol. 193(C).
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    Cited by:

    1. Charalambakis, Evangelos & Teppa, Federica & Tsiortas, Athanasios, 2024. "Consumer participation in the credit market during the COVID-19 pandemic and beyond," Working Paper Series 2922, European Central Bank.
    2. Evangelos Charalambakis & Federica Teppa & Athanasios Tsiortas, 2024. "Consumer participation in the credit market during the COVID-19 pandemic and beyond," Working Papers 807, DNB.
    3. Michaela Benzeval & Thomas F. Crossley & Edith Aguirre, 2023. "A symposium on Understanding Society, the UK Household Longitudinal Study: introduction," Fiscal Studies, John Wiley & Sons, vol. 44(4), pages 317-340, December.
    4. Burdett, Ashley & Etheridge, Ben & Wang, Yikai & Tang, Li, 2023. "Worker productivity during Covid-19 and adaptation to working from home," ISER Working Paper Series 2023-04, Institute for Social and Economic Research.

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    More about this item

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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