Contact-intensity, collapsing entertainment sector and wage inequality : a finite change model of Covid-19 impact

Sugata Marjit, Gouranga G. Das

In a general equilibrium model with online, entertainment and informal sectors employing skill, unskilled, and capital, we show that Covid-19 could cause polarization pushing contact-intensive entertainment industry on the brink of collapse while other two survive. Dual roles of factor-intensity and contact-intensity contribute to such finite changes, triggering inter-skill wage inequality.

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Year of publication:	September 2021
Authors:	Marjit, Sugata ; Das, Gouranga Gopal
Publisher:	Munich, Germany : CESifo, Center for Economic Studies & Ifo Institute
Subject:	wage-gap \| Covid \| contact-intensive \| general equilibrium \| Coronavirus \| Allgemeines Gleichgewicht \| General equilibrium \| Lohnstruktur \| Wage structure \| Theorie \| Theory \| Wirkungsanalyse \| Impact assessment