Unemployment Inequality in the Pandemic: Evidence from Sweden

27 Pages Posted: 14 Jul 2021

See all articles by Pamela Campa

Pamela Campa

Stockholm School of Economics

Jesper Roine

Stockholm School of Economics - Department of Economics

Svante Stromberg

Stockholm School of Economics - Stockholm Institute of Transition Economics (SITE)

Date Written: July 2021

Abstract

Using the full population of registered unemployed individuals in Sweden, we study the unequal labor market impact of Covid-19 depending on gender, wage, age, and country of birth. Also, having very detailed data on the occupation of the unemployed, we can study inequalities both across and within occupations. We find that two demographic factors are associated with higher unemployment in the pandemic: being young and being foreign-born. Gender, however, does not seem to play a big role in the Swedish context, likely due to both institutional factors and labor market structure, as well as policy measures such as not closing schools and day-care facilities. We also find a clear wage gradient with lower-paying jobs having higher unemployment risk. Our results confirm previous findings on the most vulnerable being hit the hardest, but at the same time emphasize the importance of country specific studies to understand the economic impacts of the pandemic.

Suggested Citation

CAMPA, PAMELA and Roine, Jesper and STRÖMBERG, SVANTE, Unemployment Inequality in the Pandemic: Evidence from Sweden (July 2021). CEPR Discussion Paper No. DP16330, Available at SSRN: https://ssrn.com/abstract=3886816

PAMELA CAMPA (Contact Author)

Stockholm School of Economics ( email )

Jesper Roine

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46-8-7369000 (Phone)

SVANTE STRÖMBERG

Stockholm School of Economics - Stockholm Institute of Transition Economics (SITE) ( email )

P.O. Box 6501
S-113 83 Stockholm, 11383
Sweden

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