Full Citation

Title: Essentially Unemployed: Potential Implications of the COVID-19 Crisis and Fiscal Response on Income Inequality

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN: 1470-1162

DOI: 10.1080/00346764.2021.1890194

NSFID:

PMCID:

PMID:

Abstract: 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.

Url: https://www.tandfonline.com/doi/full/10.1080/00346764.2021.1890194

User Submitted?: No

Authors: Schiavone, Ansel

Periodical (Full): Review of Social Economy

Issue:

Volume:

Pages: 1-24

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Poverty and Welfare

Countries: