Racial and Ethnic Disparities in the Effects of COVID-19 on Employment Disruption and Financial Precarity

Abstract

ABSTRACT Previous research shows that minoritized (i.e. Black and Hispanic) older workers are more likely to work in jobs subject to employment disruptions and negative economic outcomes, including job and wage loss. Of the studies that have examined the pandemic-related employment and financial outcomes of minoritized older workers, few studies have accounted for the role that pre-COVID-19 financial precarity (i.e. ongoing financial strain) might play in post-COVID-19 financial precarity. Using data from the Health and Retirement Study, we evaluate the racial/ethnic differences in post-COVID-19 employment disruption and financial precarities among workers 51 years and older (N = 708 to 2,812 respondents depending on the outcome measure). Ordinary Least Squares regression and moderation analyses show that older Black and Hispanic workers were more likely to experience post-COVID-19 employment disruption and associated financial precarities (e.g. missed rent/mortgage payment). Furthermore, the consequences of preexisting financial precarity differed by race/ethnicity. Non-Hispanic white older workers without pre-COVID-19 financial precarity were uniquely protected from post-COVID-19 financial precarity, whereas Black and Hispanic older workers were more likely to experience post-COVID-19 financial precarity even in the absence of pre-COVID-19 precarity. Findings suggest that multi-level policies and interventions need to address structural inequity contributing to minoritized older workers’ financial vulnerability during crises.