Mexico. Socioeconomic Effects of Covid-19 and policy options: a Multisectoral Approach

Alan Hernández-Solano (), Jhair López-López (), Antonio Yúnez-Naude () and Yatziry Govea-Vargas ()
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Alan Hernández-Solano: Instituto de Investigaciones para el Desarrollo con Equidad - Universidad Iberoamericana
Jhair López-López: National Research System
Antonio Yúnez-Naude: El Colegio de México
Yatziry Govea-Vargas: El Colegio de México
Authors registered in the RePEc Author Service: Antonio Yúnez Naude ()

Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos

Abstract: The health-care crisis due to the spread of Covid-19 has caused profound disruption on the Mexican economy and society. Our purpose in this paper is to contribute to the knowledge on the economic impacts the pandemic has had in Mexico and to evaluate social policy options to mitigate its effects. We do so based on a multisectoral-multiplier model and the most recent Social Accounting Matrix of Mexico, by which we estimate the direct and indirect impacts of Covid-19 as well the likely effects of two alternative policies aimed at mitigating these impacts: an unconditional cash transfer scheme for households living in poverty and the establishment of an insurance program for workers who have lost their jobs during the spread of the disease. We find that the former policy is superior to the latter since it alleviates more value added and income losses, as well as poverty incidence and inequality.

Keywords: Pandemic; Economywide impacts; Social policies; income distribution; poverty (search for similar items in EconPapers)
JEL-codes: C63 H12 P36 P43 (search for similar items in EconPapers)
Date: 2021-07
New Economics Papers: this item is included in nep-isf
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Persistent link: https://EconPapers.repec.org/RePEc:emx:ceedoc:2021-04

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