COVID-19 disproportionately affects the finances of low-income workers in developing countries

2-Oct-2020 1:35 PM EDT, by PLOS

Newswise — Results from a large-scale survey of households in Latin America and the Caribbean show that the negative economic impacts of the COVID-19 pandemic have been concentrated among those who had lower incomes prior to the pandemic, according to a study published October 7 in the open-access journal PLOS ONE by Nicolas Bottan of Cornell University, Bridget Hoffmann and Diego Vera-Cossio of the Inter-American Development Bank. 

The current coronavirus pandemic is an unprecedented public health challenge that is having a devastating economic impact on households. To slow the spread of COVID-19, governments have implemented regulations that require social distancing, the closing of non-essential businesses, travel restrictions and, in many cases, stay-at-home orders. Although these measures may be necessary for public health, they have negative economic​impacts and can potentially deepen the pre-existing gaps between rich and poor. Prior to the pandemic, Latin America and the Caribbean in particular had the highest income inequality in the world, and many citizens were vulnerable to falling back into poverty due to economic shocks. In the new study, Bottan and his collaborators used an online survey with 230,540 respondents from 17 countries in Latin America and the Caribbean to examine whether the COVID-19 pandemic has resulted in differential economic impacts for households across the income distribution. 

The data revealed large job losses and business closures which most affected the lowest income households. Of households reporting income of less than the national monthly minimum wage for January 2020, 71 percent reported that a household member lost their job and 61 percent reported that a household member closed their business. These findings contrast sharply with the impacts reported by the highest income respondents, just 14 percent of whom reported that a household member lost their job and 54 percent of whom reported that a household member closed their business. Their data suggest that job losses and business closures lead to reductions in health and food security, further contributing to the disproportionate impacts across income levels. 

According to the authors, the findings provide evidence that the current public health crisis will exacerbate economic inequality, and also provide some of the first estimates of the impact of the pandemic on the labor market and on well-being in developing countries. 

The authors add: “Using online surveys from seventeen countries in Latin America and the Caribbean we document that the covid-19 pandemic has large, unequal effects on job loss and business closure. The loss of livelihood leads to reductions in health and nutrition, further exacerbating economic inequality in the region.”

 

#####

 

Funding: This project was funded by the Inter-American Development Bank’s Coronavirus research funds (RG-E1700 - Coronavirus survey). The funder provided support in the form of salaries for authors Bridget Hoffmann and Diego Vera-Cossio, and provided funds to cover the cost of recruiting subjects via social media advertising, but did not have any additional role in the study design, data collection and analysis, decision to publish, or preparation of the manuscript. The specific roles of these authors are articulated in the ‘author contributions’ section.”

 

Competing Interests: The authors Bridget Hoffmann and Diego A. Vera-Cossio are employees in the Research Department at the Inter-American Development Bank. The author Nicolas Bottan is employed at Cornell University. The authors have no relevant financial or non-financial competing interests to declare. Our affiliations do not alter our adherence to PLOS ONE policies on sharing data and materials.

 

In your coverage please use this URL to provide access to the freely available article in PLOS ONE https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0239797

 

 

About PLOS ONE

PLOS ONE is a multidisciplinary, peer-reviewed open access journal that publishes sound science from all fields of scientific research.  For more information, visit http://journals.plos.org/plosone, and follow @PLOSONE on Twitter.

 

Media and Copyright Information

For information about PLOS ONE relevant to journalists, bloggers and press officers, including details of our press release process and embargo policy, visit http://journals.plos.org/plosone/s/press-and-media.

 

PLOS Journals publish under a Creative Commons Attribution License, which permits free reuse of all materials published with the article, so long as the work is cited. 

 

About the Public Library of Science
Public Library of Science (PLOS) is a nonprofit Open Access publisher, innovator and advocacy organization dedicated to accelerating progress in science and medicine by leading a transformation in research communication. The PLOS suite of journals contain rigorously peer-reviewed Open Access research articles from all areas of science and medicine, together with expert commentary and analysis. In addition to journals, the organization advances innovations in scientific publishing through Collections, Communities and The PLOS Blog Network. Founded to catalyze a revolution in scientific publishing by demonstrating the value and feasibility of Open Access publication, PLOS is committed to innovative and forward-looking solutions to scientific communication. For more information, visit http://www.plos.org.

SEE ORIGINAL STUDY



Filters close

Showing results

110 of 5849
13-Jun-2021 12:05 PM EDT
COVID-19 Pandemic Drinking: Increases Among Women, Black Adults, and People with Children
Research Society on Alcoholism

Risky drinking has been a public health concern in the U.S. for decades, but the significant increase in retail alcohol sales following COVID-19 pandemic stay-at-home orders in particular raised red flags for alcohol researchers. New research has assessed changes in alcohol drinking patterns from before to after the enactment of stay-at-home orders. These results and others will be shared at the 44th annual scientific meeting of the Research Society on Alcoholism (RSA), which will be held virtually this year from the 19th - 23rd of June 2021 due to the COVID-19 pandemic.

13-Jun-2021 1:05 PM EDT
The Impact of the COVID-19 Pandemic on Alcohol Consumption Is Far From ‘One Size Fits All’
Research Society on Alcoholism

An ongoing analysis of the effects of the COVID-19 pandemic on alcohol and related outcomes shows that COVID-related stressors experienced by study participants – including work-, financial-, and family-related stressors – are having a varied impact on individuals with and without alcohol use disorders (AUDs). These results will be shared at the 44th annual scientific meeting of the Research Society on Alcoholism (RSA), which will be held virtually this year from the 19th - 23rd of June 2021 due to the COVID-19 pandemic.

Newswise:Video Embedded newswise-expert-panels-on-covid-19-pandemic-notable-excerpts-quotes-and-videos-available
VIDEO
Released: 18-Jun-2021 2:10 PM EDT
Newswise Expert Panels on COVID-19 Pandemic: Notable excerpts, quotes and videos available
Newswise

Newswise is hosting a series of Expert Panels discussion on unique aspects of the COVID-19 pandemic. This tip sheet includes some notable quotes from the panelists.

access_time Embargo lifts in 2 days
Embargo will expire: 23-Jun-2021 8:00 AM EDT Released to reporters: 18-Jun-2021 11:00 AM EDT

A reporter's PressPass is required to access this story until the embargo expires on 23-Jun-2021 8:00 AM EDT The Newswise PressPass gives verified journalists access to embargoed stories. Please log in to complete a presspass application. If you have not yet registered, please Register. When you fill out the registration form, please identify yourself as a reporter in order to advance to the presspass application form.

Newswise:Video Embedded virtual-event-for-june-17-11am-edt-covid-19-vaccines-and-male-fertility
VIDEO
Released: 18-Jun-2021 8:55 AM EDT
VIDEO AND TRANSCRIPT AVAILABLE: Vaccines and Male Fertility Event for June 17, 2021
Newswise

This upcoming JAMA-published study examined whether the COVID-19 vaccine impacts male fertility.

access_time Embargo lifts in 2 days
Embargo will expire: 22-Jun-2021 11:00 AM EDT Released to reporters: 18-Jun-2021 8:30 AM EDT

A reporter's PressPass is required to access this story until the embargo expires on 22-Jun-2021 11:00 AM EDT The Newswise PressPass gives verified journalists access to embargoed stories. Please log in to complete a presspass application. If you have not yet registered, please Register. When you fill out the registration form, please identify yourself as a reporter in order to advance to the presspass application form.

Released: 18-Jun-2021 7:05 AM EDT
Teamwork saves lives: COVID-19 hospital network shares key findings to improve care
Michigan Medicine - University of Michigan

Data sharing among 40 Michigan hospitals about the care and outcomes for thousands of inpatients with COVID-19 has led to reduced variation and findings that could inform care anywhere, including approaches for preventing blood clots and reducing overuse of antibiotics, as well as a risk prediction tool.

Released: 18-Jun-2021 7:05 AM EDT
One-third of older Americans delayed health care over COVID concerns
Michigan Medicine - University of Michigan

Nearly one in three Americans between the ages of 50 and 80 put off an in-person appointment for medical care in 2020 because they were worried about exposure to the novel coronavirus, new national poll data show.

Released: 17-Jun-2021 4:15 PM EDT
UNC Researchers Lead Study of Diabetes Treatment of COVID-19 Patients
University of North Carolina School of Medicine

Diabetes is one of the comorbidities most strongly associated with severe COVID-19 in the US, and data from early in the pandemic suggested individuals with type 2 diabetes faced twice the risk of death from COVID-19 and a greater risk of requiring hospitalization and intensive care. A new study shows best treatment options.

Released: 17-Jun-2021 4:10 PM EDT
Vaccination, Previous Infection, Protect Against COVID-19 gamma/P.1 Variant in Animal Model
University of Wisconsin-Madison

In a new study using variant virus recovered from one of the original travelers, researchers in the U.S. and Japan have found that vaccination with an mRNA vaccine induces antibody responses that would protect humans from infection with the gamma/P.1 variant.


Showing results

110 of 5849

close
1.87643