Public Assistance Programs Help Mitigate the Adverse Economic Effects of Covid-19 on Argentine Households

Abstract

The Covid-19 pandemic caused a significant economic crisis in Argentina. GDP fell by 19% in the second quarter of 2020, while unemployment rates soared. As a result, 1.5 million people have fallen into poverty.

Particularly affected were informal workers and those employed in the tourism sector. In addition, the pandemic's impact on the labor market disproportionately affected women.

The gender-based difference was particularly stark among young adults (18-24): while the employment rate for men fell by 63%, it fell by 80% for women. Moreover, young adult women with children are also at high risk of unemployment. Employment rates for young fathers have declined by nearly 57%, while those for young mothers have plummeted by 82%.

With Argentina's worsening socio-economic conditions, it is critical to understand what policy options most effectively mitigate the pandemic's adverse effects.