Social stability challenged by Covid-19: Pandemics, inequality and policy responses

Cristiano Perugini and Marko Vladisavljevic

Journal of Policy Modeling, 2021, vol. 43, issue 1, 146-160

Abstract: The public health measures implemented to limit the COVID-19 pandemic are likely to affect economic inequalities. In this paper we first provide a theoretical framework to analyse how income inequality contributes shaping the trade-off between economic lockdown and contagion. Our empirical analysis on EU countries shows that the lockdown is likely to significantly increase inequality and poverty and that the magnitude of the change is larger in more unequal countries. To avoid social collapse, countries must consider inequality as an additional source of fragility, while supranational, coordinated health and fiscal policies are needed in the interest of all European economies.

Keywords: COVID-19 pandemic; Lockdown; Inequality; Social stability; Supranational policy coordination (search for similar items in EconPapers)
JEL-codes: D31 E61 H31 I30 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:43:y:2021:i:1:p:146-160

DOI: 10.1016/j.jpolmod.2020.10.004

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