The impact of covid-19 on income inequality in Sweden : Empirical evidence using municipality data

Abstract: This study uses data between 2011 and 2020 from the 290 municipalities of Sweden to investigate theeffect that covid-19 has had on income inequality. Excess mortality rate is used as the variablemeasuring the intensity of the pandemic and the Gini coefficient as well as percentile quotas representsincome inequality. Using a Difference in Difference approach, a positive effect on income inequalitywas found using percentile quotas. A unit increase in excess mortality corresponds to an increase inP90P10 with up to 1,1%. It was also found that mainly the low income group of people were the mostaffected.