  This paper uses Bureau of Labor Statistics employment and wage data to study
the distributional impact of the COVID-19 crisis on wages in the United States
by mid-April. It answers whether wages of lower-wage workers decreased more
than others', and to what extent. We find that the COVID-19 outbreak
exacerbates existing inequalities. Workers at the bottom quintile in mid-March
were three times more likely to be laid off by mid-April compared to
higher-wage workers. Weekly wages of workers at the bottom quintile decreased
by 6% on average between mid-February and mid-March and by 26% between
mid-March and mid-April. The average decrease for higher quintiles was less
than 1% between mid-February and mid-March and about 10% between mid-March and
mid-April. We also find that workers aged 16-24 were hit much harder than older
workers. Hispanic workers were also hurt more than other racial groups. Their
wages decreased by 2-3 percentage points more than other workers' between
mid-March and mid-April.
