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Disparities in COVID-19’s Impact on Employment and Household Consumption

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Abstract

This article investigates the socio-demographic differences in household responses to the COVID-19 pandemic regarding employment and consumption. We find that the significant racial disparities in employment observed during the pandemic can be explained, in part, by differences in household income, composition, education, and occupational sorting. Nonetheless, we document pervasive racial, income, and educational gradients when focusing on household food insecurity and individuals' reliance on social insurance programs and other government assistance during the pandemic. Overall, our results highlight that the disparities observed for household income and education tend to be the most significant and most pervasive following the onset of the COVID-19 crisis.

Suggested Citation

  • Andrea Flores & George-Levi Gayle, 2022. "Disparities in COVID-19’s Impact on Employment and Household Consumption," Review, Federal Reserve Bank of St. Louis, vol. 104(4), pages 224-265, October.
    • Handle: RePEc:fip:fedlrv:94871
    DOI: 10.20955/r.104.224-65
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    4. Francine D. Blau & Josefine Koebe & Pamela A. Meyerhofer, 2021. "Who are the essential and frontline workers?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(3), pages 168-178, July.
    5. Kay Jowers & Christopher Timmins & Nrupen Bhavsar & Qihui Hu & Julia Marshall, 2021. "Housing Precarity & the COVID-19 Pandemic: Impacts of Utility Disconnection and Eviction Moratoria on Infections and Deaths Across US Counties," NBER Working Papers 28394, National Bureau of Economic Research, Inc.
    6. Milena Almagro & Joshua Coven & Arpit Gupta & Angelo Orane-Hutchinson, 2020. "Racial Disparities in Frontline Workers and Housing Crowding during COVID-19: Evidence from Geolocation Data," Opportunity and Inclusive Growth Institute Working Papers 37, Federal Reserve Bank of Minneapolis.
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    More about this item

    Keywords

    COVID-19; employment; household consumption;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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