The Heterogeneous and Regressive Consequences of Covid-19: Evidence from High Quality Panel Data
In the working paper, Thomas F. Crossley (European University Institute), Paul Fisher (ISER and University of Essex), and Hamish Low (University of Oxford) use new data from the Understanding Society COVID-19 Study collected in two waves in April and in May 2020 in the UK to make three contributions. First, Understanding Society is based on probability samples and the Covid-19 Study is carefully constructed to support valid population inferences. Second, the panel allows a long-run measure of income to characterise regressivity. Third, the authors have novel data on the mitigation strategies that households use. Their key findings are that those with precarious employment, under 30 and from minority ethnic groups face the biggest labour market shocks. Almost 50% of individuals have experienced declines in household earnings of at least 10%, but declines are most severe in the bottom income quintiles. Methods of mitigation vary substantially across groups: borrowing and transfers from family and friends are most prevalent among those most in need.
Read the working paper here
