IMF Working Papers

Inequality in the Spanish Labor Market During the COVID-19 Crisis

By Ana Lariau, Lucy Qian Liu

January 28, 2022

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Ana Lariau, and Lucy Qian Liu. Inequality in the Spanish Labor Market During the COVID-19 Crisis, (USA: International Monetary Fund, 2022) accessed October 12, 2024

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Summary

We analyze the differential impact of the COVID-19 crisis on the Spanish labor market across population groups, as well as its implications for income inequality. The main finding is that young, less educated, and low skilled workers, as well as women are the most affected by the COVID-19 shock in terms of job loss rates. The differential impacts were especially acute at the height of the pandemic in 2020 and remain robust after taking into account the heterogeneity of sector characteristics. Given that these vulnerable groups were positioned in the lower end of the income distribution before the crisis, we hypothesize that income inequality likely has increased due to the pandemic. Policies aiming at reducing inequality in the labor market need to go beyond measures that target the hardest-hit sectors and support the vulnerable groups more directly.

Subject: COVID-19, Health, Income distribution, Income inequality, Labor, Labor markets, National accounts, Unemployment

Keywords: COVID-19, COVID-19 pandemic, Differential effect, Differential impact, Europe, Income distribution, Income inequality, Inequality, Job retention schemes, Labor market, Labor market differential effect, Labor market outcome, Labor markets, Spain, Temporary contract, Unemployment

Publication Details

  • Pages:

    27

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/018

  • Stock No:

    WPIEA2022018

  • ISBN:

    9798400201059

  • ISSN:

    1018-5941