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Sectoral Impact of COVID-19: Cascading Risks

Institute Working Paper 31 | Published May 7, 2020

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Authors

Latchezar Popov Texas Tech University

Sectoral Impact of COVID-19: Cascading Risks

Abstract

Workers are unequal in the face of the COVID-19 pandemic: Those who work in essential sectors face higher health risk whereas those in non-essential social-consumption sectors face greater economic risk. We study how these health and economic risks cascade into other sectors through supply chains and demand linkages. In the U.S., we find the cascading effects account for about 25-30% of the exposure to both risks. The cascading effect increases the health risk faced by workers in the transportation and retail sectors, and it increases the economic risk faced by workers in the textile and petroleum sectors. We provide sectoral estimates of the health and economic risk for 42 other countries in an online interactive document.