Briefing Note: Medium-run wealth inequality following COVID-19

Angelopoulos, K. , Lazarakis, S., Mancy, R. and Schroeder, M. (2021) Briefing Note: Medium-run wealth inequality following COVID-19. Other. University of Glasgow and Lancaster University.

Abstract

COVID-19 has led to a severe economic recession. We examine its potential medium-run effects on household-level wealth inequality in the UK. We use modelling analysis to study short and long recession scenarios. In the short recession scenario, there is a significant increase in wealth inequality characterised by a combination of a decrease in wealth accumulation for economically active households with lower income, an increase in wealth accumulation for households with higher incomes, and an increase in within-group inequality. In the long recession scenario, a worsening of the income and employment effects of the recession and a slower recovery lead to particularly severe wealth losses for economically active households with lower income, giving rise to a very large increase in inequality.

• Item Type: Research Reports or Papers (Other)
• Additional Information: Rebecca Mancy is supported by The Leckie Fellowship, the UK Medical Research Council (MRC) Places and Health Programme (MC_UU_00022/4) and the Chief Scientist Office (CSO) (SPHSU10) at the MRC / CSO Social and Public Health Sciences Unit, University of Glasgow.
• Status: Published
• Glasgow Author(s) Enlighten ID: Schroeder, Mr Max and Mancy, Dr Rebecca and Lazarakis, Mr Spyridon and Angelopoulos, Professor Konstantinos
• Authors: Angelopoulos, K., Lazarakis, S., Mancy, R., and Schroeder, M.
• College/School: College of Medical Veterinary and Life Sciences > School of Health & Wellbeing > MRC/CSO SPHSU; College of Social Sciences > Adam Smith Business School > Economics
• Publisher: University of Glasgow and Lancaster University
• Copyright Holders: Copyright © 2021 The Authors
• Publisher Policy: Reproduced with the permission of the Author

Project Code	Award No	Project Name	Principal Investigator	Funder's Name	Funder Ref	Lead Dept
311208		Assessing policy to address the medium-run impact of COVID-19 on income and health inequality with models informed by the history of disease outbreak	Konstantinos Angelopoulos	UK Research and Innovation ( UKRI) (UKRI)	ES/V005898/1	BS - Economics
304823004	1	Places and health	Rich Mitchell	Medical Research Council (MRC)	MC_UU_00022/4	HW - MRC/CSO Social and Public Health Sciences Unit
72762	1	Neighbourhoods and Communities	Anne Ellaway	Office of the Chief Scientific Adviser (CSO)	SPHSU10	HW - MRC/CSO Social and Public Health Sciences Unit
304823009	1	Places and health	Rich Mitchell	Office of the Chief Scientific Adviser (CSO)	SPHSU19	HW - MRC/CSO Social and Public Health Sciences Unit