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COVID-19 and Income Inequality: Evidence from Monthly Population Registers

Daniel Waldenström () and Nikolay Angelov ()
Additional contact information
Nikolay Angelov: The Swedish Tax Agency and Uppsala Center for Fiscal Studies (UCFS)

No 1396, Working Paper Series from Research Institute of Industrial Economics

Abstract: We measure the distributional impact of the COVID-19 pandemic using newly released population register data in Sweden. Monthly earnings inequality increased during the pandemic, and the key driver is income losses among low-paid individuals while middle- and high-income earners were almost unaffected. The pandemic had a larger negative impact on private-sector workers and on women. Using data on individual take-up of government COVID-19 support, we show that policy significantly dampened the inequality increase, but did not fully offset it. Annual total market income inequality, which also includes capital income and taxable transfers, shows similar patterns of increasing inequality during the pandemic.

Keywords: Pandemic; Income inequality; Earnings; Government policy (search for similar items in EconPapers)
JEL-codes: D31 H12 H24 J22 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2021-07-02
New Economics Papers: this item is included in nep-eur and nep-lma
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Related works:
Working Paper: Covid-19 and Income Inequality: Evidence from Monthly Population Registers (2021) Downloads
Working Paper: COVID-19 and Income Inequality: Evidence from Monthly Population Registers (2021) Downloads
Working Paper: COVID-19 and Income Inequality: Evidence from Monthly Population Registers (2021) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1396

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