Can COVID-19 Shows Income Inequality?

Abstract

This paper attempts to investigate the existence of a correlation between COVID-19 and income inequality. This research paper's primary objective is to prove that the fast expansion of COVID-19 cases can be related to the income inequality levels in any country. However, this paper is not looking at economic growth. We focus on how people benefit from this economic growth through the income (re)distribution among different social groups in the same country. According to the World Health Organization (WHO), the top countries with more COVID-19 infected cases, such as the U.S., Brazil, Russia, India, United Kingdom, Peru, Chile, Spain, Italy, and Iran. According to our preliminary results from the ten countries in mention, we can observe the sad reality of income inequality worldwide. Therefore, the COVID-19 can be an alternative parameter to evaluate the income inequality. Finally, this the paper tries to present policies and recommendations to solve income inequality from a holistic approach.

Keywords: Policy Modeling; Income Inequality Indicators; Economic Development; Graphs

JEL Classification: I32