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Cambridge-INET Institute   COVID-19 Economic Research

 

Dr. Christopher Rauh has just published two working papers looking at the economic impacts of COVID-19 on workers in the UK and US. The papers are joint with former Faculty of Economics PhD student Teodora Boneva (University of Zurich), Abi Adams-Prassl (University of Oxford) and Marta Golin (University of Oxford).

COVID-19 is not only a global health pandemic; it has brought whole economies grinding to a halt. In order to gain an understanding about the impact this has on workers, we conducted geographically representative surveys of workers in the US and UK on March 24th and 25th, respectively.

We find that, at the time of the survey, about one in ten UK workers already had lost their job due to the spread of the virus. Most of those that were still working were working less, earning less, and expecting their individual situations to worsen further in the next months. The average expected probability of having problems to cover usual bills was 56% in the US and 49% in the UK.

 

 

 

US

UK

 

 

These negative impacts are not equally spread across the working population. Our evidence suggests that this downturn is highly likely to increase inequality across the income distribution, between young and old, and between those on insecure and secure contracts. Besides the immediate pressure on household to cover their bills, policy must also consider the long-term consequences. Preventing this shock from having permanent effects on the employment progression of the younger generation and the less-economically advantaged is imperative.

 

Read the papers in full:

 

Inequality in the Impact of the Coronavirus Shock: New Survey Evidence for the US.

Inequality in the Impact of the Coronavirus Shock: New Survey Evidence for the UK.

Inequality in the Impact of the Coronavirus Shock: Evidence from Real Time Surveys.

The Impact of the Coronavirus Lockdown on Mental Health: Evidence from the US.

 

Dr. Rauh's research was featured in the following media outlets:

 

The Telegraph Newspaper

The Times

BBC Newsnight

Mirage News

The Guardian

Yahoo Italy

University of Cambridge Research News

Wired - 8 April

Washington Post

The Economist

Telegraph and Argus

Phys Org

Forbes

QNewsHub

Mirage News - 21 April Vogue

Voxeu

The Cambridge Network

Vice - 28 April

Wired - 28 April

The Naked Scientists Podcast

The Economist

Observer

UOL

Libération

Ökonomenstimme

Quartz - 8th May

Metro Brazil

Quartz - 22nd May

Standpoint Magazine

BBC Newsnight

Der Spiegel

BBC 5 Live Radio (2h mark)

India Today

The Jakarta Post

Japan Today

 

In a recent interview with Dr. Toke Aidt, Dr. Christopher Rauh discusses the Economic Inequality in the Impact of the Coronavirus Shock. Watch the video below.

 

Dr. Rauh took part in the Centre for Science and Policy's Science, Policy & Pandemics Podcast, where along with Dr. Meredith Crowley, they explored the implications of the COVID-19 shock for international trade and labour market inequalities, with a focus on the UK context. Watch the video below.

 


Dr Christopher Rauh

About the author
Dr. Christopher Rauh is a University Lecturer at the Faculty of Economics, University of Cambridge. His research interests are in Macroeconomics, Political Economy, Labour Economics.