The Unequal Impact of the Coronavirus Pandemic: Evidence from Seventeen Developing Countries
Date issued
Aug 2020
Journal version
Summary
Subject
Food Security;
Equality;
Minimum Wage;
Labor Market;
Household Survey;
Coronavirus;
Pandemic;
Public Health;
Household Income;
Lockdown
JEL code
D14 - Household Saving; Personal Finance;
I18 - Government Policy • Regulation • Public Health;
I14 - Health and Inequality;
I32 - Measurement and Analysis of Poverty
Country
Colombia;
Dominican Republic;
Mexico;
Peru;
Uruguay;
Trinidad and Tobago;
Chile;
Jamaica;
Bolivia;
El Salvador;
Guyana;
Ecuador;
Bahamas;
Barbados;
Suriname;
Costa Rica;
Panama
Category
Working Papers
The current coronavirus pandemic is an unprecedented public health challenge that has devastating economic impacts for households. Using a sample of 230,540 respondents to online surveys in 17 countries in Latin America and the Caribbean, we show that the economic impacts are large and unequal: 45% of respondents report that a household member lost a job, and among households owning small businesses, 59% of respondents report that a household member closed their business. Among households with the lowest income prior to the pandemic, 71% report that a household member lost their job and 61% report that a household member closed their business. Declines in food security and healthiness are among the disproportionate impacts. Our results provide evidence that the current public health crisis will exacerbate economic inequality, and they are among the rst estimates of the labor market and wellbeing impacts of the pandemic in developing countries.
Generative AI enabled