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

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dc.contributor.authorPalomino Quintana, Juan César
dc.contributor.authorRodríguez Hernández, Juan Gabriel
dc.contributor.authorSebastián Lago, Raquel
dc.date.accessioned2023-06-17T12:24:24Z
dc.date.available2023-06-17T12:24:24Z
dc.date.issued2021
dc.description.abstractWe 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.
dc.description.facultyFac. de Ciencias Económicas y Empresariales
dc.description.facultyInstituto Complutense de Análisis Económico (ICAE)
dc.description.refereedTRUE
dc.description.sponsorshipMinisterio de Ciencia e Innovación (MICINN)
dc.description.sponsorshipComunidad de Madrid/COTEC Foundation
dc.description.sponsorshipCiti for the Inequality and Prosperity programme Oxford Martin School
dc.description.statuspub
dc.eprint.idhttps://eprints.ucm.es/id/eprint/64218
dc.identifier.issn2341-2356
dc.identifier.officialurlhttps://www.ucm.es/icae/working-papers
dc.identifier.relatedurlhttps://www.ucm.es/icae
dc.identifier.urihttps://hdl.handle.net/20.500.14352/11886
dc.issue.number03
dc.language.isoeng
dc.page.total25
dc.publisherFacultad de Ciencias Económicas y Empresariales. Escuela de Estudios Cooperativos
dc.relation.ispartofseriesDocumentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE)
dc.relation.projectIDPID2019- 104619RB-C42
dc.relation.projectIDOPINBI-CM (H2019/HUM-5793); 2018-T2/SOC-10408
dc.relation.projectID2018-T2/SOC-10408
dc.rights.accessRightsopen access
dc.subject.jelD33
dc.subject.jelE24
dc.subject.jelJ21
dc.subject.jelJ31
dc.subject.keywordCOVID-19
dc.subject.keywordpoverty
dc.subject.keywordinequality
dc.subject.keywordteleworking
dc.subject.keywordsocial distancing
dc.subject.keywordregions
dc.subject.keywordSpain.
dc.subject.ucmTrabajo
dc.titleThe COVID-19 shock on the labour market: Poverty and inequality effects across Spanish regions
dc.typetechnical report
dc.volume.number2021
dcterms.referencesAlonso-Villar, O. and Del Río, C. (2008): “Geographical concentration of unemployment: A male–female comparison in Spain”, Regional Studies, 42, 401-412. BBVA Research (2020): “El impacto de COVID-19 en el consumo en tiempo real y alta definición”. Retrieved 17 December. Available at: https://www.bbvaresearch.com/publicaciones/global-el-impacto-del-covid-19-en-elconsumo-en-tiempo-real-y-alta-definicion-17-dic/. Bourguignon, F. (1979): “Decomposable Income Inequality Measures”, Econometrica, 47, 901-20. Chetty, R., Friedman, J.N., Hendren, N., Stepner, M. and the Opportunity Insights Team (2020): “How did COVID-19 stabilization policies affect spending and employment? A new real-time economic tracker based on private sector data”, NBER Working Paper No. 27431. Retrieved 15 October. Available at: https://tracktherecovery.org. Dingel, J. and Neiman, B. (2020): “How many jobs can be done at home?”, Journal of Public Economics, 189, in press. Foster, J.E. and Shneyerov, A.A. (2000): “Path Independent Inequality Measures”, Journal of Economic Theory, 91, 199-222. IMF (2020): “World Economic Outlook Update”. Retrieved 7 October. Available at: https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/ADVEC/WEOWORLD. Goolsbee, A. and Syverson, Ch. (2021): “Fear, Lockdown, and Diversion: Comparing Drivers of Pandemic Economic Decline 2020”, Journal of Public Economics, 193, in press. Hicks, M.J., Faulk, D. and Devaraj, S. (2020): “Occupational exposure to social distancing: A preliminary analysis using O*NET data”, Center for Business and Economic Research, Ball State University. INE (2021): “Indicadores de calidad de vida”. Available at: https://www.ine.es/jaxi/Tabla.htm?path=/t00/ICV/dim4/l0/&file=41401.px&L=0. Mongey, S., Pilossoph, L. and Weinberg, A. (2020): “Which workers bear the burden of social distancing policies?”, NBER Working Paper No. 27085. OECD (2021), Income inequality (indicator). doi: 10.1787/459aa7f1-en (Accessed on 24 January 2021). Palomares-Linares, I. and van Ham, M. (2020): “Understanding the effects of homeownership and regional unemployment levels on internal migration during the economic crisis in Spain”, Regional Studies, 54, 515-526. Palomino, J.C., Rodríguez, J.G. and R. Sebastian (2020a): “Teletrabajo en España, ¿estamos preparados?”, Blog Nada es Gratis, 8-5-2020. Palomino, J.C., Rodríguez, J.G. and R. Sebastian (2020b): “Wage inequality and poverty effects of lockdown and social distancing in Europe”, European Economic Review, 129, in press. Ravallion, M. and Chen, S. (2003): “Measuring pro-poor growth”, Economics Letters, 78, 93-99. Sebastian, R. (2020): “Teletrabajo en España: de dónde venimos y a dónde vamos”, Policy Insight #24, EsadeEcPol - Center for Economic Policy. Shorrocks, A.F. (1980): “The Class of Additively Decomposable Inequality Measures”, Econometrica, 48, 613-625.
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