The mitigating role of tax and benefit rescue packages for poverty and inequality in Africa amid the COVID-19 pandemic

Lastunen, Jesse; Rattenhuber, Pia; Adu-Ababio, Kwabena; Gasior, Katrin; Jara, H. Xavier; Jouste, Maria; McLennan, David; Nichelatti, E.; Oliveira, Rodrigo Cesar Reis de; Pirttilä, Jukka; Richiardi, Matteo; Wright, Gemma

doi:10.35188/unu-wider/2021/088-7

Cited by 20 publications

(25 citation statements)

References 26 publications

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“…We convert these predictions to per capita percentile growth rates from 2018/19 to 2020 and apply them to our 2019 vector for Ethiopia. For Tanzania, we use estimates of the growth in mean disposable income due to the pandemic by income quartile from Lastunen et al (2021). The growth rates are relative to a counterfactual dataset created to reflect the situation right before the pandemic started.…”

Section: A2 Estimates From the Literaturementioning

confidence: 99%

“…Earlier work on global inequality (such as Deaton 2021) and global poverty (such as Lakner et al 2022, Valensisi 2020, Sumner et al 2020 did not account for within-country inequality or used general equilibrium models (Laborde et al 2021). Several cross-country studies estimate the impact of the pandemic on poverty and inequality within countries (Clark et al 2021, Lastunen et al 2021, Lustig et al 2021, Palomino et al 2020.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of COVID-19 on Global Inequality and Poverty

Mahler¹,

Yonzan²,

Lakner³

2022

Policy Research Working Papers

110

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: A2 Estimates From the Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Impact of COVID-19 on Global Inequality and Poverty

Mahler¹,

Yonzan²,

Lakner³

2022

Policy Research Working Papers

110

View full text Add to dashboard Cite

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“…In Ecuador, unemployment insurance payments increased income by less than 1 percent in the lowest decile, compared with COVID-19-related benefits, which increased income by 13 percent (Jara, Montesdeoca, and Tasseva 2021). Analyses of a range of countries in Africa found that automatic stabilizers had negligible effects (Lastunen et al 2021). Public works were used by households in need, but often at later stages of the crisis, when social distancing restrictions had eased and aversion behavior had abated.…”

Section: Covid-19 Cash Transfers In Togo (Continued)mentioning

confidence: 99%

Poverty and Shared Prosperity 2022: Correcting Course

2021

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Some rights reserved 1 2 3 4 25 24 23 22 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

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“…Around the world, recent empirical applications used microsimulation models to monitor the distributional impact of the COVID‐19 pandemic and the role of welfare states in mitigating effects before microdata became available (Avellaneda et al, 2021; Barnes, Espi‐Sanchis, et al, 2021; Brewer & Tasseva, 2021; Cantó et al, 2021; Lastunen et al, 2021). Wright et al (2021) present similar findings for Indonesia.…”

Section: Introductionmentioning

confidence: 99%

Adaptive social protection in Indonesia: Stress‐testing the effect of a natural disaster on poverty and vulnerability

Gasior,

Wright,

Barnes

et al. 2023

Soc Policy Adm

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Indonesia is among the countries with the highest exposure to natural disasters, and risks are expected to increase due to climate change. Natural disasters and other shocks require well‐developed social protection systems that can cushion the economic consequences for those most vulnerable to these events. International stakeholders advocate for ‘Adaptive Social Protection’ which links social policy with strategies on disaster risk reduction and climate change adaptation. This article uses the tax‐benefit microsimulation model INDOMOD to analyse the adaptiveness of the Indonesian social protection system by simulating an income shock caused by a natural disaster and testing reforms to the existing social protection system. We find that the existing system generally performs well in lifting people out of poverty in normal times but does not sufficiently help them to prepare for and cope with shocks. This is especially the case for large households, households with more than two children, people in their 20s and 80s and individuals with a disability. The tested hypothetical reforms reduce the impact of the shock and better target those identified as needing more support but require a substantial increase in social spending.

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The mitigating role of tax and benefit rescue packages for poverty and inequality in Africa amid the COVID-19 pandemic

Cited by 20 publications

References 26 publications

The Impact of COVID-19 on Global Inequality and Poverty

The Impact of COVID-19 on Global Inequality and Poverty

Poverty and Shared Prosperity 2022: Correcting Course

Adaptive social protection in Indonesia: Stress‐testing the effect of a natural disaster on poverty and vulnerability

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