Modelling inequalities in economic loss and an economic recovery from Covid-19: A ‘big’ administrative data approach

Covid-19 and the resulting lockdowns have caused a substantial shock to the UK economy. Consequently, there have been fears that the pandemic would exacerbate existing economic inequalities between men and women, the young and old, and employees and their employers. By combining official statistics with panel survey data, we provide a view of the economic shocks experienced in the wake of the pandemic. This paper explores whether (i) school closures have meant that women have worse labour market shocks than men, (ii) younger and older people have been harder hit by the recession, and (iii) Government policies have led to different outcomes for employees and firm owners. We find that, although employment has fallen, the number of companies in the UK has risen significantly. Whereas men suffered lower wages because of furlough and unemployment, women worked less to compensate for childcare. We compare these findings to previous economic recessions.


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