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

Date
2023-01Author
Martinez-Correa, Julian
Cruces, Guillermo
Menduina, Juan
Puig, Jorge
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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.