The effect of COVID-19 and emergency policies on Colombian households’ income

Federico Corredor, Paola Ríos, David Rodríguez (icorredorcarvajal1@student.gsu.edu)

No 19548, Documentos de Trabajo UEC from Universidad Externado de Colombia

Abstract: This paper studies the effects that the COVID-19 lockdown measures and the different emergency taxbenefit policies introduced by the authorities had on the household income distribution in Colombia. We measure the employment effects of the lockdown decree and use the tax-benefit microsimulation model for Colombia -COLMOD- to study the emergency policies for the first complete month of lockdown: April 2020. We found that 6.2 million of jobs are destroyed implying an average reduction of 16.5% of household income, with dramatic losses at the bottom of the distribution. The new policies introduced increased income by 0.8 billion pesos and offset the income loss of those in poverty but not of those slightly above the poverty line, this group could get on average only 84% of their previous income.

Keywords: COVID-19; pandemic; poverty; income distribution; subsidies; microsimulation; Colombia (search for similar items in EconPapers)
Pages: 32
Date: 2021-02-10
New Economics Papers: this item is included in nep-isf
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Persistent link: https://EconPapers.repec.org/RePEc:col:000139:019548

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