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

Juan C. Palomino ^[1] ; Juan G. Rodríguez ^[2] ; Raquel Sebastian ^[2]
1. [1] University of Oxford
  
  University of Oxford
  
  Oxford District, Reino Unido
2. [2] Universidad Complutense de Madrid
  
  Universidad Complutense de Madrid
  
  Madrid, España
Localización: Documentos de Trabajo (ICAE), ISSN-e 2341-2356, Nº. 3, 2021, págs. 1-25
Idioma: inglés
Enlaces
- Texto completo (pdf)

Resumen
- 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.