Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238078 
Year of Publication: 
2020
Series/Report no.: 
Working Papers No. 20-16
Publisher: 
Federal Reserve Bank of Boston, Boston, MA
Abstract: 
This paper exploits the variation in the unemployment rate of different occupations in the first part of the COVID-19 pandemic to analyze the response of consumption spending to unemployment risk. We find that earlier in the pandemic, higher unemployment risk did not reduce relative spending. However, as the pandemic proceeded, higher unemployment risk reduced relative spending. This pattern held across both essential and nonessential spending categories. We find that "high-risk" occupations had three common characteristics: lower ability to be performed from home, higher physical proximity on the job, and a nonessential nature.
Subjects: 
consumption
occupation
unemployment risk
COVID-19
CARES Act
JEL: 
E21
E32
E62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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