The Income and Consumption Effects of Covid-19 and the Role of Public Policy

Suphanit Piyapromdee; Peter Spittal

doi:10.1111/1475-5890.12252

The Income and Consumption Effects of Covid-19 and the Role of Public Policy

Suphanit Piyapromdee^*, Peter Spittal^*

^*Corresponding author for this work

School of Economics

Research output: Contribution to journal › Article (Academic Journal) › peer-review

23 Citations (Scopus)

305 Downloads (Pure)

Abstract

We provide empirical evidence on the labour market impacts of COVID‐19 in the UK and assess the effectiveness of mitigation policies. We estimate the relationship between employment outcomes and occupational and industrial characteristics and assess the effects on consumption. Seventy per cent of households in the bottom fifth of the earnings distribution hold insufficient assets to maintain current spending for more than one week. We compare the effectiveness of the UK's Coronavirus Job Retention Scheme and of Economic Impact Payments in the US. The EIPs are more effective at mitigating consumption reductions as they have full coverage, depend on household structure and are higher for low‐income workers.

Original language	English
Pages (from-to)	805-827
Number of pages	23
Journal	Fiscal Studies
Volume	41
Issue number	4
DOIs	https://doi.org/10.1111/1475-5890.12252
Publication status	Published - 30 Nov 2020

Research Groups and Themes

ECON CEPS Welfare
ECON CEPS Data
ECON Applied Economics
Covid19

Keywords

Covid-19
Consumption
Income
Household Structure
Mitigation policy

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The Income and Consumption Effects of Covid-19 and the Role of Public Policy

Abstract

Research Groups and Themes

Keywords

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