Earnings business cycles: The Covid recession, recovery, and policy response

A-Tier
Journal: Journal of Public Economics
Year: 2023
Volume: 225
Issue: C

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using a panel of tax data, we follow individuals’ earnings over business cycles. Compared to prior recessions, the Covid policy response and recovery were more progressive. Among workers starting in the bottom quintile, median real earnings including fiscal relief increased 66 percent in 2020—after the prior two recessions this measure decreased. This resulted from substantial Covid-era stimulus payments and unemployment insurance. With fiscal relief ending, bottom-quintile earnings in 2022 returned near pre-Covid levels. Among those starting in the top quintile, median real market earnings rose in 2020. Top-quintile earnings subsequently fell, although by less than around previous recessions.

Technical Details

RePEc Handle
repec:eee:pubeco:v:225:y:2023:i:c:s0047272723001652
Journal Field
Public
Author Count
3
Added to Database
2026-01-25