Income and employment losses during the COVID-19 pandemic and the financial situation of households: evidence from the EFF

Laura Crespo, Marina Gómez-García, Pau Jovell, Blanca Rivera Garrido and Ernesto Villanueva
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Laura Crespo: Banco de España
Pau Jovell: The Brattle Group

Economic Bulletin, 2023, issue 2023/Q4, No 05

Abstract: Rationale Drawing on the Spanish Survey of Household Finances (EFF), this article analyses the relationship between the losses of employment or reductions in labour income caused by COVID-19 and the Spanish population’s financial position, uncertainty and life satisfaction. Takeaways •Between 2019 and end-2020, uneven declines in labour income were observed among individuals affected by job retention schemes, lay-offs or business closures, although public assistance mitigated the most pronounced falls. •Between 2017 and 2020, the relative fall in spending on non-durable goods was 6-10 percentage points higher among those affected by such circumstances, reflecting broad-based increases in uncertainty about their future income. •Compared with the unaffected group, levels of indebtedness rose most markedly, and increases in net wealth were most subdued, among those who experienced more protracted job or income losses.

Keywords: COVID-19; income; wealth and debt distribution; public policy (search for similar items in EconPapers)
JEL-codes: D31 H31 J63 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bde:journl:y:2023:i:04:n:05

DOI: 10.53479/35555

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