The COVID-19 catastrophe has been dubbed the worst economic disaster since the Great Depression. Global income was predicted to expand 3% in January
But it is now expected to plummet 3%, far worse than during the Great Recession of 2008-09. Behind this dreadful number is an even more dreadful prospect.
If previous pandemics are any indication, the toll on the poorest and more vulnerable elements of society will be significantly higher. Indeed, according to a recent poll of senior economists
the clear majority believe the COVID-19 pandemic will exacerbate inequality, because of its disproportionate impact on low-skilled employees.
Our findings back up worries regarding pandemics’ negative distributional effects. We discover that significant diseases in this century have exacerbated income inequality and harmed career prospects for those with only a high school diploma, while having no effect on those with advanced degrees.