COVID-19 labour market shocks and their inequality implications for financial wellbeing

Arbeitspapier

Using an online survey of Australian residents, we elicit the potential impacts of COVID-19 related labour market shocks on a validated measure of financial wellbeing. Experiencing a reduction in hours and earnings, entering into unemployment or having to file for unemployment benefits during the pandemic are strongly and significantly associated with decreases in financial wellbeing of 29% or 18 points on the financial wellbeing scale of 0-100, despite various government measures to reduce such effects. Unconditional quantile regression analyses indicate that the negative COVID-19 labour market effects are felt the most by people in the lowest percentiles of the financial wellbeing distribution. Counterfactual distribution regressions indicate a shifting of the financial wellbeing distribution leftwards brought on by those suffering any of the above-mentioned labour market shocks, indicating potential significant increases in financial wellbeing disadvantage and inequality.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: GLO Discussion Paper ; No. 661

Classification and Topics

• Classification: Wirtschaft ; Household Saving; Personal Finance ; Distribution: Other ; Unemployment Insurance; Severance Pay; Plant Closings ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement
• Subject: Financial wellbeing ; COVID-19 ; unemployment ; earnings reduction ; inequality

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Botha, Ferdi ; de New, John P. ; de New, Sonja C. ; Ribar, David C. ; Salamanca, Nicolás
• Event: Veröffentlichung
• (who): Global Labor Organization (GLO)
• (where): Essen
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/224145
• Last update: 10.03.2025, 11:43 AM CET