The COVID-19 resilience of a continental welfare regime - nowcasting the distributional impact of the crisis.

ABSTRACT: We evaluate the COVID-19 resilience of a Continental welfare regime by nowcasting the implications of the shock and its associated policy responses on the distribution of household incomes over the whole of 2020. Our approach relies on a dynamic microsimulation modelling that combines a household income generation model estimated on the latest EU-SILC wave with novel nowcasting techniques to calibrate the simulations using external macro controls which reflect the macroeconomic climate during the crisis. We focus on Luxembourg, a country that introduced minor tweaks to the existing tax-benefit system, which has a strong social insurance focus that gave certainty during the crisis. We find the system was well-equipped ahead of the crisis to cushion household incomes against job losses. The

SUBMITTER: Sologon DM 

PROVIDER: S-EPMC8861260 | biostudies-literature | 2022 Feb

REPOSITORIES: biostudies-literature