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Astarita, C., Alcidi, C. Did the COVID-19 Pandemic Impact Income Mobility and Income Distribution?. Applied Economics Quarterly, 68(3), 161-190. https://doi.org/10.3790/aeq.2022.1422302
Astarita, Caterina and Alcidi, Cinzia "Did the COVID-19 Pandemic Impact Income Mobility and Income Distribution?" Applied Economics Quarterly 68.3, 2022, 161-190. https://doi.org/10.3790/aeq.2022.1422302
Astarita, Caterina/Alcidi, Cinzia (2022): Did the COVID-19 Pandemic Impact Income Mobility and Income Distribution?, in: Applied Economics Quarterly, vol. 68, iss. 3, 161-190, [online] https://doi.org/10.3790/aeq.2022.1422302
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Did the COVID-19 Pandemic Impact Income Mobility and Income Distribution?

Astarita, Caterina | Alcidi, Cinzia

Applied Economics Quarterly, Vol. 68 (2022), Iss. 3 : pp. 161–190

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/aeq.2022.1422302
Language
German
Pages
30
Keywords

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Author Details

Corresponding author: CEPS, Centre for European Policy Studies, Pl. du Congrès 1, 1000 Bruxelles. .

CEPS, Centre for European Policy Studies, Pl. du Congrès 1, 1000 Bruxelles.

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Abstract

The purpose of this paper is to measure employee income mobility during the first year of COVID-19 and, as a further result, to offer evidence of the progressive effect of short-term work schemes. Using the rotational sample structure of the EU Labour Force Survey (EU LFS) database, the individual income position, measured in quintiles, may be identified in two separate quarters within 2020. As a result, a variety of income mobility indices and the underlying transition matrices may be computed. Mobility indices and transition matrices give highly comprehensive information on the percentage of individuals whose economic situation improves or deteriorates. Indeed, the analysis, carried up to the quintile level, provides significant evidence of the progressivity of the cushioning measures, particularly the short-term work schemes. Six EU Member States are examined, and the research compares the first year of COVID-19 to a baseline scenario (2019). The COVID-19-induced crisis is also compared to prior financial and sovereign debt crises.

Table of Contents

Section Title Page Action Price
Caterina Astarita / Cinzia Alcidi: Did the COVID-19 Pandemic Impact Income Mobility and Income Distribution? 161
1. Introduction 161
2. State of the Art 163
3. Methodology 165
3.1 Data 166
3.2 Transition Matrices and Mobility Indices 167
3.4 Methodology 170
4. Analysis of the Results 170
4.1 Employees’ Income Mobility: COVID-19 Scenario vs. Pre-COVID-19 Scenario and COVID-19 Scenario vs. Financial and Economic Crisis 172
4.2 An In-Depth Analysis of Income Mobility During the COVID-19 Pandemic 175
5. Conclusions, Limitations, and Further Research 181
References 183
Annex 1. Methodology Details 186

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