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.

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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, Dr Konstantinos
Authors: Angelopoulos, K., Lazarakis, S., Mancy, R., and Schroeder, M.
College/School:College of Medical Veterinary and Life Sciences > Institute of Health and 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

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