The Disparities on Loss of Employment Income by US Households During the COVID-19 Pandemic.

Abstract

This paper examines the role of the COVID-19 pandemic on the loss of employment income on different ethnic groups in the USA using weekly Household Pulse Survey (HPS) data from the US Census Bureau from August 19 to November 9, 2020. This study is significant for two reasons. First, it documents the loss of employment income on various households in the USA during the COVID-19 pandemic period from March 13, 2020, to November 9, 2020. Second, it examines the effect on the different ethnic groups based on demographic and socioeconomic status of these households. We specifically examine the role of income, employment, education, location, access to technology, and health insurance among the different age groups, race/ethnicity, and gender. We employ multivariate logistic regression analysis for the study. The study also employs Oaxaca-Blinder decomposition analysis to investigate the source of disparities in loss of employment income on the different racial/ethnic groups. The multivariate regression examines the effects of income, employment, education, location, health insurance, access to technology, different age groups, race/ethnicity, and gender. This method enables us to estimate the level of differences in loss of employment income outcomes among the various race/ethnic groups based on their socioeconomic status. Our a priori expectation is that loss of employment income and household income, educational status, and employment will be positively correlated. However, we have no a priori expectation of the correlation with location, race/ethnicity, and gender. Our results show that Hispanics, Blacks, Other, and Asians experienced a loss of employment income of 35.6%, 25.3%, 31.2%, and 6.2% higher than Whites, respectively. Equally important is that 45.9%, 40.3%, and 25.2% of the differences are unexplained or attributed to discrimination for Hispanics, Other, and Blacks, respectively.