Distributional Impact of COVID-19 Pandemic on Household Employment and Education

The economic effects of COVID-19 have been widespread and multifaceted. Researchers are just beginning to understand the extent of the economic recession and the effectiveness of implemented measures. To further expand knowledge around this issue, the current research examines post-pandemic economic shocks and their disproportionate impact on employment and education. The study relies on survey data from CPS (Current Population Survey) and BLS (Bureau of Labor and Statistics) that is aggregated on IPUMS (Integrated Public Use Microdata Series). Multiple regression analysis is performed to isolate specific category effects of the pandemic. The results show the expected distributional effects of the economic recession. These include widespread employment losses and disproportionate effects on low-paying occupations compared to high-paying occupations. Disproportionate impacts are also witnessed in different demographics. Notably, it is observed that African Americans and Hispanics experience higher employment impacts compared to their Caucasian counterparts. In response to the pandemic, liquidity-constrained households seem to have invested less in education.