New Article: Marianne P. Bitler, UC Davis; Hilary W. Hoynes, UC Berkeley; and Diane Whitmore Schanzenbach, Northwestern University, COVID-19 Recession Highlights Need for Expansion of Social Safety Net, Center for Poverty Research University of California Davis.
Many households and individuals are struggling financially due to COVID-19. The labor market shock, which by April 2020 saw a 14.1 percentage-point increase in the share unemployed or with a job but not at work or not in the labor force, has been significantly greater for those with lower levels of education. The increase in April unemployment was 17.8 percentage points for those with high school or less compared to 8.8 percentage points for those with a college degree or more. These striking inequalities across education groups, which continue through May and June 2020, are a recurring feature of U.S. business cycles.
Poverty Law 