Inequality in the Impact of the Coronavirus Shock: New Survey Evidence for the US

Abstract

Using new US survey data collected on March 24th 2020, we already find that: 65% of workers engaged in less paid work over the past week than usually. 11% of workers had already lost their job due to COVID-19. For those still in work, the expected probability of job loss within the next four months is 40%. On average, workers expect to earn 39% less in the next four months compared to usual. As a consequence, workers expect there is a 56% chance of having problems paying their bills. 93% of respondents expect to have problems paying usual bills with above zero probability. The harsh impacts are not evenly distributed across the population; the young ,and low income earners have been hit hardest. Workers without paid sick leave are more likely to go to work in close proximity to others.