How effective were measures introduced in the COVID-19 crisis in supporting household incomes?

Susanne Maidorn () and Lukas Reiss ()
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Susanne Maidorn: Office of the Fiscal Advisory Council
Lukas Reiss: Oesterreichische Nationalbank, Economic Analysis Division

Monetary Policy & the Economy, 2021, issue Q3/21, 23-37

Abstract: We analyze the distributional effects of both, the COVID-19 crisis and the measures introduced to support household incomes, using the microsimulation model developed by the Office of the Fiscal Advisory Council (FISKSIM). In 2020, more than one-third of Austrian households were affected, at least temporarily, by unemployment, short-time work or losses in self-employed income. The fiscal measures to support household incomes clearly cushioned the financial impact of the crisis on households. They proved particularly effective in two ways: First, lower- income households benefited more (vertical effectiveness); second, within individual income brackets, those households that had experienced higher losses due to the COVID-19 shock benefited more strongly from support measures (horizontal effectiveness). This was achieved mostly by the establishment of the hardship fund and one-off payments to unemployed workers.

Keywords: fiscal stabilization measures; income distribution (search for similar items in EconPapers)
JEL-codes: D30 H53 (search for similar items in EconPapers)
Date: 2021
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