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

• Author: Stephen Roll,Bradley Hardy,Charles Hokayem
• DOI: 10.1177/00027162211069429
• Published date: 01 November 2021
• Date: 01 November 2021

ANNALS, AAPSS, 698, November 2021 39

DOI: 10.1177/00027162211069429

Crashing

without a

Parachute:

Racial and

Educational

Disparities in

Unemployment

during

COVID-19

By

BRADLEY HARDY,

CHARLES HOKAYEM,

and

STEPHEN ROLL

1069429ANN THE ANNALS OF THE AMERICAN ACADEMYCRASHING WITHOUT A PARACHUTE

research-article2021

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 eco-

nomic 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 differ-

ences 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 alter-

native financial strategies to cope throughout the pan-

demic.

Keywords: COVID-19; pandemic; employment; eco-

nomic instability; demographic disparities

The economic crisis brought forth by the

COVID-19 pandemic has ushered in an era

of economic insecurity for many families, busi-

nesses, and communities across demographic

groups. Many Black and Hispanic families have

absorbed a disproportionate share of this inse-

curity. Predating the pandemic, relatively low

levels of savings and wealth among Black

Bradley Hardy is an associate professor in the McCourt

School of Public Policy at Georgetown University. His

publications include “Location Matters: Historical

Racial Segregation and Intergenerational Mobility”

and “Long-Run Analysis of Regional Inequalities in the

U.S.” His research focuses on labor economics, eco-

nomic insecurity, and social welfare policy.

Charles Hokayem is the chief of the income statistics

branch in the Social, Economic, and Housing Statistics

Division at the U.S. Census Bureau. His research

focuses on the role of survey nonresponse on income

data quality and in measuring income, poverty, and

inequality.

Correspondence: blh5@georgetown.edu

40 THE ANNALS OF THE AMERICAN ACADEMY

families (Hardy and Logan 2020; McIntosh etal. 2020) coupled with widening

Black-white earnings inequality (Gould and Wilson 2020) have resulted in large

disparities in readiness to withstand the reduced economic activity and subse-

quent job loss from COVID-19. This weakened position results in part from

higher workforce participation rates within the low-wage labor market among

minorities (Chandra 2000; Gould and Wilson 2020; Hardy, Smeeding, and Ziliak

2018), leading to less predictable work hours and income streams (Schneider and

Harknett 2019).

Some features of the experience of many minority workers and families mirror

that of less-educated workers in general, who are in turn more likely to be

exposed to economic insecurity. Other aspects of exposure to the economic con-

sequences of COVID-19 among Blacks likely reflect, in part, long-standing,

structural economic conditions unique to Black families and communities (Hardy

and Logan 2020; Hardy, Logan, and Parman 2018). And given that low-wage

work is oftentimes frontline work, the inability of these workers to practice social

distancing has likely contributed to Black Americans’ disproportionately higher

share of COVID-19 exposure and deaths (Benitez, Courtemanche, and Yelowitz

2020).

Given the magnitude of damage to public health and economic well-being, it

is important to understand the short-term and medium-term consequences of

the COVID-19 pandemic and ensuing economic crisis and how this impact

differs across race/ethnicity, education, and industry. Many estimates of the

short- and medium-term demographic differences in labor market outcomes do

not account for education and industry; nor do they consistently compare out-

comes for the same individuals over time. Furthermore, we know relatively little

about mental health consequences or the strategies many families pursue to cope

financially amid the pandemic. As a result, the effective delivery of pandemic-

related economic policy solutions may be compromised, insofar as our diagnosis

of the pandemic’s impact is limited.

To help address this gap, we use two rich datasets to explore core questions of

employment dynamics—examining both levels and changes in employment—

across race, ethnicity, education, and industry. In so doing, we assess how the

economic and public health shock from COVID-19 has impacted different socio-

economic groups and whether the typical sources of protection from economic

insecurity, such as education, are uniformly protective across the U.S. population.

We find evidence of widespread economic hardship across race and ethnicity as

Stephen Roll is an assistant professor of research at the Social Policy Institute and the Brown

School at Washington University in St. Louis. His research centers on consumer financial pro-

grams and policies, specifically the ways in which nonprofit and public programs impact

financial outcomes for lower-income or financially distressed households.

NOTE: The authors thank Carol Graham and an anonymous referee for helpful comments on

an earlier draft. All errors are our own. Charles Hokayem contributed to this article in his

personal capacity and independent of his responsibilities at the U.S. Census Bureau. The views

expressed in this article, including those related to statistical, methodological, technical, or

operational issues, are solely those of the authors and do not necessarily reflect the official

positions or policies of the U.S. Census Bureau.