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Inequality in the Spanish Labor Market During the COVID-19 Crisis
Author: Ana Lariau and Lucy Qian Liu
Series:
IMF Working Papers
Volume/Issue:
Volume 2022: Issue 018
Language:
English
Publication Date:
28 Jan 2022
DOI:
https://doi.org/10.5089/9798400201059.001
ISBN:
9798400201059
ISSN:
1018-5941
Pages:
27
Keywords:
COVID-19 pandemic; Labor market; Inequality; Job retention schemes; Spain; labor market differential effect; differential impact; temporary contract; labor market outcome; differential effect; Labor markets; COVID-19; Income inequality; Unemployment; Income distribution; Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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We analyze the differential impact of the COVID-19 crisis on the Spanish labor market across population groups, as well as its implications for income inequality. The main finding is that young, less educated, and low skilled workers, as well as women are the most affected by the COVID-19 shock in terms of job loss rates. The differential impacts were especially acute at the height of the pandemic in 2020 and remain robust after taking into account the heterogeneity of sector characteristics. Given that these vulnerable groups were positioned in the lower end of the income distribution before the crisis, we hypothesize that income inequality likely has increased due to the pandemic. Policies aiming at reducing inequality in the labor market need to go beyond measures that target the hardest-hit sectors and support the vulnerable groups more directly.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund