August 2024

The COVID-19 Pandemic and Family Economic Well-being: Evidence from the Survey of Consumer Finances

Sarena Goodman, Gina Li, Kevin Moore, and Alice Henriques Volz

Abstract:

The COVID-19 pandemic caused severe disruptions to the U.S. labor market and economic activity. We establish connections between family experiences of the pandemic, their income under normal conditions, and their later economic well-being using the 2022 Survey of Consumer Finances. By their interview, one-third of families experienced net employment declines, one-third had teleworked, and one-fifth had significant COVID-19-related health events. These experiences strongly reflected families’ positions in the income distribution, with lower-income families bearing the brunt. They also tightly predict income and wealth after the initial disruptions, signifying that the pandemic economy likely amplified pre-pandemic differences and fostered new divides.

Keywords: COVID-19, Survey of Consumer Finances, Family economic well-being

DOI: https://doi.org/10.17016/FEDS.2024.068

PDF: Full Paper

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Last Update: August 23, 2024