Earnings Losses and the Role of the Welfare State during the COVID-19 Pandemic: Evidence from Sweden

Adrian Adermon, Lisa Laun, Patrik Lind, Martin Olsson, Jan Sauermann and Anna Sjögren (anna.sjogren@ifau.uu.se)
Additional contact information
Patrik Lind: IFAU
Anna Sjögren: IFAU

No 15662, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Many governments introduced temporary adjustments to counter the economic and health consequences of the COVID-19 pandemic. We study the importance of already existing government transfers and pandemic measures to mitigate individual income losses during the pandemic in Sweden using a difference-in-differences approach and population-wide data on monthly earnings and government transfer payments. We find that labor earnings dropped by 2.7 percent in 2020. Existing transfers and pandemic measures reduced earnings losses to 1.5 percent. These average effects mask considerable differences in income losses, which were, by and large, evened out by existing transfers and pandemic measures.

Keywords: government transfers; income inequality; COVID-19; short-time work (search for similar items in EconPapers)
JEL-codes: C23 D31 E24 H12 H20 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2022-10
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Review of Income and Wealth , 2024, 70 (4), 981 - 1010

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Related works:
Working Paper: Earnings losses and the role of the welfare state during the COVID-19 pandemic: evidence from Sweden (2022)
Working Paper: Earnings Losses and the Role of the Welfare State During the COVID-19 Pandemic: Evidence from Sweden (2022)
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