Essentially unemployed

Potential implications of the Covid-19 crisis and fiscal response on income inequality

Bibliographic Data

ID9255841
AuthorsAnsel Schiavone (0000-0001-5847-2447, University of Utah, corresponding author)
Year2023
Volume81
Issue3
Pages469-492
Publication date2023-07-03
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueReview of Social Economy (JOURNAL)
Journal identifiersISSN: 0034-6764 • E-ISSN: 1470-1162
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00346764.2021.1890194
OpenAlexW3134329028
LanguageEN
References cited34

I analyze the impact of the CARES Act unemployment subsidy on US income and inequality in the first month of the COVID-19 crisis using March-April Current Population Survey data. I then use monthly industry unemployment data to extend this panel to July. Next, I estimate the impact of the expiration of the CARES Act subsidy on average income and inequality. Finally, I extend the panel to November to simulate the effects of proposed HEALS and HEROES Acts. I find the CARES Act subsidy was effective at increasing average income above pre-crisis levels and reducing inequality. The expiration of the CARES Act subsidy caused a decrease in average income and increase in inequality relative to pre-crisis levels. I find the proposed HEALS legislation will return inequality to near pre-crisis levels, while the proposed HEROES Act will result in higher income and lower inequality than existed before the crisis

Coronavirus disease 2019 (COVID-19) · Demographic economics · Econometrics · Economic inequality · Economics · Inequality · Labour economics · Legislation · Macroeconomics · Panel data · Political science · Population · Subsidy · Unemployment · COVID-19 Pandemic Impacts · Employment and Welfare Studies · Psychological Well-being and Life Satisfaction

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