From Recession to Pandemic: Evolving Inequalities in OECD Countries through a Two-Decade Analysis of Socio-Economic Impacts

Embarking on an exploration of socio-economic disparities within OECD countries over two decades, this research investigates the effects of the Great Recession and the COVID-19 pandemic on income distribution, labor market dynamics, and health outcomes. Using Exploratory Data Analysis of time-series and mixed-effects models, the study reveals a context characterized by intensifying inequalities, with variations reflecting the unique socio-economic structures of individual countries. It uncovers a pronounced increase in income inequality in countries including Lithuania, Luxembourg, Italy, and the United States, alongside shifts in labor market conditions, with the United States being particularly notable. Furthermore, the analysis highlights a widening of health disparities, evidenced by a decline in life expectancy in countries like the United States, Poland, and Slovakia, and a slowdown in reducing infant mortality rates. The use of mixed-effects models elucidates the role of country-specific factors in shaping these inequalities, revealing a complex interplay of influences that highlight the varied impacts of the pandemic across the OECD. This study not only charts the evolving contours of socio-economic inequalities but also enhances the understanding of global crises’ effects on developed economies.