Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/224145
Authors: 
Botha, Ferdi
de New, John P.
de New, Sonja C.
Ribar, David C.
Salamanca, Nicolás
Year of Publication: 
2020
Series/Report no.: 
GLO Discussion Paper 661
Abstract: 
Using an online survey of Australian residents, we elicit the potential impacts of COVID-19 related labour market shocks on a validated measure of financial wellbeing. Experiencing a reduction in hours and earnings, entering into unemployment or having to file for unemployment benefits during the pandemic are strongly and significantly associated with decreases in financial wellbeing of 29% or 18 points on the financial wellbeing scale of 0-100, despite various government measures to reduce such effects. Unconditional quantile regression analyses indicate that the negative COVID-19 labour market effects are felt the most by people in the lowest percentiles of the financial wellbeing distribution. Counterfactual distribution regressions indicate a shifting of the financial wellbeing distribution leftwards brought on by those suffering any of the above-mentioned labour market shocks, indicating potential significant increases in financial wellbeing disadvantage and inequality.
Subjects: 
Financial wellbeing
COVID-19
unemployment
earnings reduction
inequality
JEL: 
D14
D39
J65
G51
D63
Document Type: 
Working Paper

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