The COVID-19 shock on the labour market: Poverty and inequality effects across Spanish regions

Juan Palomino, Juan Rodríguez and Raquel Sebastian ()

No 2021-03, Documentos de Trabajo del ICAE from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico

Abstract: We evaluate the distributional consequences of social distancing for the case of Spanish regions. Under 2 months of lockdown plus 10 months of partial functioning our study consistently finds potential wage losses that are sizeable and uneven across the wage distribution all around Spain, but with different intensity depending on the region’s productive structure. The increase of the headcount poverty index oscillates between 8.2 (Navarre) and 19.2 (the Balearic Islands) percentage points, while the Gini coefficient rises between 2.3 (Navarre) and 5.3 (the Balearic Islands) Gini points. We also find that inequality between regions increases, eroding regional cohesion in Spain.

Keywords: COVID-19; poverty; inequality; teleworking; social distancing; regions; Spain. (search for similar items in EconPapers)
JEL-codes: D33 E24 J21 J31 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2021-02
New Economics Papers: this item is included in nep-eur, nep-lma and nep-mac
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https://eprints.ucm.es/id/eprint/64218/1/2103.pdf (application/pdf)

Related works:
Journal Article: The COVID-19 shock on the labour market: poverty and inequality effects across Spanish regions (2023)
Working Paper: The COVID-19 shock on the labour market: Poverty and inequality effects across Spanish regions (2021)
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