Catching Up and Coping in the COVID Economy

Abstract

In this article, we assess the utility of the American Voices Project in supplementing more traditional sources of labor market data. To do so, we explore the effects of safety net program expansions on household financial stability and labor force participation during the COVID-19 pandemic. We find that despite the expanded safety net, employment loss was sometimes associated with declines in financial well-being. We find little evidence of the programs disincentivizing work, however. Pandemic relief programs helped cover essential living expenses, but implementation challenges muted their effects for some. Connections between employment loss and declines in mental well-being, as well as both the vulnerability and importance of gig work, emerged as prominent, if unexpected, themes. Our analysis suggests that, with improvements, an ongoing, large-scale qualitative data collection effort could be an invaluable asset in monitoring labor market conditions in low-income communities.

Keywords

• american voices project
• pandemic labor market
• unemployment insurance benefits
• mental well-being
• gig work