Crashing without a Parachute: Racial and Educational Disparities in Unemployment during COVID-19

Abstract

The burden of the COVID-19 pandemic has not been shouldered equally by American families. Black and Hispanic communities have been hit the hardest, with the pandemic often exacerbating existing disparities. Using nationally representative data, we assess the economic and public health effects of the pandemic among different socioeconomic groups and whether typical sources of protection from economic insecurity are uniformly protective across the U.S. population. Within these sociodemographic groups, we also explore differences by education and industry. We find higher levels of employment loss among Blacks and Hispanics, those without college degrees, and frontline workers. We also find evidence that individuals and families are facing mental health episodes and are turning to costly alternative financial strategies to cope throughout the pandemic.