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Pandemic Policy and Individual Income Changes across Europe

Working Paper 2022-600

Abstract

We use data from the COME-HERE panel survey collected by the University of Luxembourg to assess the effects of COVID-19 policy responses on disposable incomes in France, Germany, Italy, Spain and Sweden between January 2020 and October 2021. Policy responses are measured by the Stringency and Economic Support Indices from the Oxford COVID-19 Government-Response Tracker. Controlling for the evolution of the pandemic itself, we find that the income cost of greater stringency measures is borne only by the most economically-vulnerable, while government economic-support measures have a positive effect across the income distribution.

Authors: Andrew Clark, Conchita D’Ambrosio, Anthony Lepinteur, Giorgia Menta.

Keywords: COVID-19, Income losses, Lockdown policies, Economic support policies
JEL: I18, I32, H24