| Abstract: |
Governments worldwide have implemented stringent lockdown measures in response
to the COVID-19 pandemic outbreak, which has had an adverse impact on
employment, affecting people's public life, health, and wellbeing. People have
witnessed job losses, cuts in wages, and a decline in their living standards
and quality of life. This study aims to estimate the inequalities and
wellbeing costs, demonstrating the living standards necessary to make up for
people's wage reduction or job losses. In particular, we aim to explore the
coping strategies used to enhance their wellbeing compared to those of
households without a coping strategy. We use food insecurity as a measure of
wellbeing outcomes. The empirical analysis relies on detailed household
surveys from the World Bank Microdata Library. We use seven waves of the Panel
COVID-19 Rapid Response Phone Survey with Households in 20202022 in Kenya.
Also, the results highlight the potential inequalities of the COVID-19
pandemic across gender and types of workers, such as those employed in the
informal sector and on temporary contracts. The findings show that specific
coping strategies, such as delayed payment obligations, credit purchases, and
reduced non-food consumption, are associated with larger inequalities.
Regarding the gender of the head of the household, the results suggest that
the disparities between female-headed households that had to cope with income
and employment loss and female-headed households that did not require to
follow any strategy are significantly higher compared to their male
counterparts. We derive similar concluding remarks when we consider households
with social security coverage and the type of employment contract. Key words:
Coping strategies; COVID-19; Food insecurity; Inequalities; Kenya; Panel data;
Sub-Saharan region; Risks; World Bank microdata. |