COVID-19 Is Having a Devastating Impact on the Economic Well-being of Latino Families

Abstract

Latino Americans are more likely than non-Hispanic whites to contract COVID-19 and to face disproportionately high mortality rates when they contract the virus. What has not been well understood is the impact COVID-19 is having on the economic well-being of Latino families. Using the Abriendo Puertas/Latino Decisions National Parent Survey (1195), we asked Latino respondents how the pandemic has impacted their employment, savings, and finances and we also asked them how they have been coping to make ends meet. Using descriptive analysis and ordinal least squares regression, we find that Latinos are experiencing high job loss and business closures. We also find that young parents (18-29-year olds) and those with income levels of $25,000 or lower are experiencing the most economic stress. We also find that Latinos are having difficulty making housing payments and postponing educational and health-related services to make ends meet. We also find that just over half of Latinos have emergency savings under $1000 which is important given that unemployment benefits expired on July 31, 2020. In conclusion, this research finds that Latinos are experiencing economic stressors and are engaging in coping strategies that are deeply concerning and which require explicit attention from policymakers. Given that Latinos took the longest to recover from the Great Recession, policymakers should keep this in mind as we continue to monitor the implications of the recession, ideally looking at mechanisms to reduce the stress for Latino families and encourage policies which target low-income working class Americans and small business owners.