Disparities in COVID-19’s Impact on Employment and Household Consumption

Abstract

This article investigates the socio-demographic differences in household responses to the COVID-19 pandemic regarding employment and consumption. We find that the significant racial disparities in employment observed during the pandemic can be explained, in part, by differences in household income, composition, education, and occupational sorting. Nonetheless, we document pervasive racial, income, and educational gradients when focusing on household food insecurity and individuals’ reliance on social insurance programs and other government assistance during the pandemic. Overall, our results highlight that the disparities observed for household income and education tend to be the most significant and most pervasive following the onset of the COVID-19 crisis. (JEL J21, J24, J63, I38).