The labour market fallout of COVID-19: Who endures, who doesn't and what are the implications for inequality

Abstract

Government responses to the COVID-19 pandemic have differed in scope and design, with important implications for the labour market as a whole but also for specific groups of workers. Using labour force survey data from seven middle- and high-income countries, this article analyses transitions in the labour market in the first two quarters of 2020 and compares them with transitions in the previous year. The authors find that governments that favoured wage subsidies over other forms of income support were able to lessen labour market volatility, but that in all seven countries studied the COVID-19 pandemic exacerbated labour market inequalities.