Inequality in Life and Death

Martin S. Eichenbaum, Sergio Rebelo*, Mathias Trabandt

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Scopus citations


We argue that the COVID epidemic disproportionately affected the economic well-being and health of poor people. To disentangle the forces that generated this outcome, we construct a model that is consistent with the heterogeneous impact of the COVID recession on low- and high-income people. According to our model, two-thirds of the inequality in COVID deaths reflect preexisting inequality in comorbidity rates and access to quality health care. The remaining third stems from the fact that low-income people work in occupations where the risk of infection is high. Our model also implies that the rise in income inequality generated by the COVID epidemic reflects the nature of the goods that low-income people produce. Finally, we assess the health–income trade-offs associated with fiscal transfers to the poor and mandatory containment policies.

Original languageEnglish (US)
Pages (from-to)68-104
Number of pages37
JournalIMF Economic Review
Issue number1
StatePublished - Mar 2022


  • Epidemic
  • Inequality
  • Recession

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics, Econometrics and Finance(all)


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