The fall in income inequality during COVID-19 in four European countries

Andrew Eric Clark · Conchita D’Ambrosio · Anthony Lepinteur

99 citations0/0 files storedThe Journal of Economic Inequality

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Income, Poverty, and Inequality Labor market dynamics and wage inequality COVID-19 Pandemic Impacts

Abstract

We here use panel data from the COME-HERE survey to track income inequality during COVID-19 in France, Germany, Italy, and Spain. Relative inequality in equivalent household disposable income among individuals changed in a hump-shaped way between January 2020 and January 2021, with an initial rise from January to May 2020 being more than reversed by September 2020. Absolute inequality also fell over this period. Due to the pandemic some households lost more than others, and government compensation schemes were targeted towards the poorest, implying that on average income differences decreased. Generalized Lorenz domination reveals that these distributive changes reduced welfare in Italy. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s10888-021-09499-2.

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References

2020The Impact of COVID-19 on Gender Equality 2020Inequality in the impact of the coronavirus shock: Evidence from real time surveys 1983Ranking Income Distributions 2020COVID-19, lockdowns and well-being: Evidence from Google Trends 2020Working from home and income inequality: risks of a ‘new normal’ with COVID-19 2020The impact of COVID-19 on gender inequality in the labor market and gender-role attitudes n.d.Gender Inequality in Paid and Unpaid Work During Covid-19 Times 2020The Short-Term Economic Consequences of Covid-19: Exposure to Disease, Remote Work and Government Response

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