Inequality in Life and Death

Martin Eichenbaum, Sergio Rebelo and Mathias Trabandt

No 29063, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We argue that the Covid epidemic disproportionately affected the economic well-being and health of poor people. To disentangle the forces that generated this outcome, we construct a model that is consistent with the heterogeneous impact of the Covid recession on low- and high-income people. According to our model, two thirds of the inequality in Covid deaths reflect pre-existing inequality in comorbidity rates and access to quality health care. The remaining third, stems from the fact that low-income people work in occupations where the risk of infection is high. Our model also implies that the rise in income inequality generated by the Covid epidemic reflects the nature of the goods that low-income people produce. Finally, we assess the health-income trade-offs associated with fiscal transfers to the poor and mandatory containment policies.

JEL-codes: E1 H0 I1 (search for similar items in EconPapers)
Date: 2021-07
New Economics Papers: this item is included in nep-dge, nep-hea, nep-isf and nep-mac
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published as Martin S. Eichenbaum & Sergio Rebelo & Mathias Trabandt, 2022. "Inequality in Life and Death," IMF Economic Review, vol 70(1), pages 68-104.

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Journal Article: Inequality in Life and Death (2022)
Working Paper: Inequality in Life and Death (2021)
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