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The COVID-19 shock on the labour market: Poverty and inequality effects across Spanish regions

Author

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  • Juan C. Palomino

    (University of Oxford (UK), INET and Department of Social Policy and Intervention.)

  • Juan G. Rodríguez

    (Universidad Complutense de Madrid (Spain), ICAE, EQUALITAS and CEDESOG.)

  • Raquel Sebastian

    (Universidad Complutense de Madrid (Spain), ICAE and EQUALITAS.)

Abstract

We evaluate the distributional consequences of social distancing for the case of Spanish regions. Under 2 months of lockdown plus 10 months of partial functioning our study consistently finds potential wage losses that are sizeable and uneven across the wage distribution all around Spain, but with different intensity depending on the region’s productive structure. The increase of the headcount poverty index oscillates between 8.2 (Navarre) and 19.2 (the Balearic Islands) percentage points, while the Gini coefficient rises between 2.3 (Navarre) and 5.3 (the Balearic Islands) Gini points. We also find that inequality between regions increases, eroding regional cohesion in Spain.

Suggested Citation

  • Juan C. Palomino & Juan G. Rodríguez & Raquel Sebastian, 2021. "The COVID-19 shock on the labour market: Poverty and inequality effects across Spanish regions," Documentos de Trabajo del ICAE 2021-03, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    • Handle: RePEc:ucm:doicae:2103
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    References listed on IDEAS

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    1. Simon Mongey & Laura Pilossoph & Alex Weinberg, 2020. "Which Workers Bear the Burden of Social Distancing Policies?," Working Papers 2020-51, Becker Friedman Institute for Research In Economics.
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    Cited by:

    1. Vanina Adoriana Trifan & Komalpreet Kaur, 2022. "Understanding the Effects of the Russia-Ukraine Conflict on the Global Economy," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 180-184, September.

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    More about this item

    Keywords

    COVID-19; poverty; inequality; teleworking; social distancing; regions; Spain.;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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