The COVID-19 shock on the labour marketPoverty and inequality effects across Spanish regions

  1. Juan C. Palomino 1
  2. Juan G. Rodríguez 2
  3. Raquel Sebastian 3
  1. 1 University of Oxford (UK), INET and Department of Social Policy and Intervention
  2. 2 Universidad Complutense de Madrid (Spain), ICAE, EQUALITAS and CEDESOG
  3. 3 Universidad Complutense de Madrid (Spain), ICAE and EQUALITAS
Revista:
Documentos de Trabajo (ICAE)

ISSN: 2341-2356

Ano de publicación: 2021

Número: 3

Páxinas: 1-25

Tipo: Documento de traballo

Outras publicacións en: Documentos de Trabajo (ICAE)

Resumo

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.

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