Inequality and the COVID-19 Crisis in the United Kingdom

Jonathan Cribb (), Monica Costa Dias, Richard Blundell (), Robert Joyce (), Thomas Wernham (), Tom Waters () and Xiaowei Xu
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Jonathan Cribb: Institute for Fiscal Studies, London, United Kingdom
Robert Joyce: Institute for Fiscal Studies, London, United Kingdom
Thomas Wernham: Institute for Fiscal Studies, London, United Kingdom
Tom Waters: Institute for Fiscal Studies, London, United Kingdom
Xiaowei Xu: Institute for Fiscal Studies, London, United Kingdom

Annual Review of Economics, 2022, vol. 14, issue 1, 607-636

Abstract: We review the effects of the COVID-19 pandemic on inequalities in education, the labor market, household living standards, mental health, and wealth in the United Kingdom. The pandemic has pushed up inequalities on several dimensions. School closures, in particular, disrupted the learning of poorer children, leading to lower attainment. Mental health worsened for those groups (women and younger adults) who had poorer mental health pre-pandemic. Lockdowns and social distancing particularly reduced the ability of younger, lower-earning, and less educated people to work. However, job-support programs combined with the expanded welfare system meant that, if anything, disposable income inequality fell. Rising house prices have benefited people around the middle of the wealth distribution. In the longer term, lower work experience and training for the less educated and missed schooling—particularly among children from more deprived families—could push up human capital inequalities and reduce social mobility.

Keywords: inequality; COVID-19 pandemic; education; living standards; wealth (search for similar items in EconPapers)
JEL-codes: D31 H55 I24 I38 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (15)

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DOI: 10.1146/annurev-economics-051520-030252

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