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

This paper explores novel survey data from a large representative sample of UK workers on 25th March, two days into the government-imposed lock-down. Findings suggest that even with the unprecedented policy response from the government, many UK workers are already feeling the effects of the economic slowdown and expect significant economic hardship as a result of containment measures. Across all outcome measures, younger workers expect a more severe economic shock in the coming months than older workers: younger workers believe they have a much larger chance of losing their job and have difficulties paying their bills, and they also expect to make a smaller percentage of their usual income. Of those currently employed, on average, those under 30 expect there is a 39% chance of them losing their job or shutting their business if self-employed compared to 27% chance for workers aged 40-55. On average, those under 30 expect there is a 53% chance of them having difficulties paying their bills compared to 45% chance for workers aged 40-55. Those under 30 expect to have 40% lower earnings on average than usual over the next five months compared to 31% for those aged 40-55.


Click HERE to read the full article from the University of Oxford, University of Zurich and University of Cambridge, 1st April 2020.