COVID-19 and Income Inequality: Evidence from Monthly Population Registers

38 Pages Posted: 20 Jul 2021

See all articles by Nikolay Angelov

Nikolay Angelov

Uppsala University

Daniel Waldenström

Research Institute of Industrial Economics (IFN)

Date Written: 2021

Abstract

We measure the distributional impact of the COVID-19 pandemic using newly released population register data in Sweden. Monthly earnings inequality increased during the pandemic, and the key driver is income losses among low-paid individuals while middle- and high-income earners were almost unaffected. The pandemic had a larger negative impact on private-sector workers and on women. Using data on individual take-up of government COVID-19 support, we show that policy significantly dampened the inequality increase, but did not fully offset it. Annual total market income inequality, which also includes capital income and taxable transfers, shows similar patterns of increasing inequality during the pandemic.

JEL Classification: D310, H120, H240, J220

Suggested Citation

Angelov, Nikolay and Waldenström, Daniel, COVID-19 and Income Inequality: Evidence from Monthly Population Registers (2021). CESifo Working Paper No. 9178, Available at SSRN: https://ssrn.com/abstract=3885421 or http://dx.doi.org/10.2139/ssrn.3885421

Nikolay Angelov (Contact Author)

Uppsala University ( email )

Uppsala
Sweden

Daniel Waldenström

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

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