Simulations of Policy Responses and Interventions to Promote Inclusive Adaptation to and Recovery from the COVID-19 Crisis in Argentina

Abstract

This paper simulates the effects of policy responses to the COVID-19 pandemic on household income and employment in Argentina, using household survey data and administrative data on employment and wages by economic sectors. The paper also includes a gender and age group analysis. The results indicate that during the COVID-19 crisis, household income decreased. This welfare loss was nonlinear along the income distribution, with the lowest income earners suffering the most due to relatively higher informality at the bottom of the income distribution. The policy responses seem to ameliorate by around one-third what the average drop in household income, and prevented major increases in poverty and inequality.