How Much Did the CARES Act Help Households Stay Afloat?

Aylward, James; Laderman, Elizabeth; Oliveira, Luiz E.; Teng, Gladys

Journal Article

How Much Did the CARES Act Help Households Stay Afloat?

Abstract: Widespread job losses starting in mid-March last year forced many households to rely more heavily on nonemployment income and liquid assets on hand to continue buying what they needed. Federal assistance through the Coronavirus Aid, Relief, and Economic Security Act helped boost household resilience—the ability to sustain consumption despite the loss of employment income. Data suggest that the aid increased household resilience by 15 weeks, chiefly through enhanced unemployment insurance benefits. Among racial groups, this benefited Black and Hispanic households the most, raising median household resilience by 19 weeks.

Keywords: CARES Act; COVID-19; unemployment insurance; diversity; resilience; households;