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 ()
Additional contact information
Patrik Lind: Institute for Evaluation of Labour Market and Education Policy (IFAU)
Anna Sjögren: Institute for Evaluation of Labour Market and Education Policy (IFAU), Postal: and Uppsala Center for Labor Studies (UCLS)

No 1443, Working Paper Series from Research Institute of Industrial Economics

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: COVID-19; Income inequality; Government transfers; Short-time work (search for similar items in EconPapers)
JEL-codes: C23 D31 E24 H12 H20 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2022-10-27
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (1)

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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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