Abstract:Social distancing strategies to control the spread of COVID-19 are necessary to save lives but may have severe consequences for livelihoods. To avoid the widespread destruction of jobs in the formal sector during the pandemic, the Brazilian government has introduced the Emergency Income and Jobs Maintenance Programme. To assess the impact of the Programme on household income, the authors simulate counterfactual household incomes and find that it is an important tool to preserve jobs, wages and household incomes, especially for low-wage employees.

Keywords:income shocks; COVID-19; unemployment benefits; household incomes; emergency programmes
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Type/Issue:One Pager/443

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