Distant and Unequal. Lockdown and Inequalities in Italy

Abstract

We simulate the short-term effectof two months of lockdown on the Italian income distribution. With a static microsimulation model we show how poverty and inequality were effected by restrictions imposed during Coronavirus outbreak in March and April. We estimate a not negligible increasebothin poverty and inequality, effects to a large extent mitigated by stimulus measures implemented by the government. However, we show that adopting alternative social protection approaches would have guaranteed a more universal coverage in particular forhouseholds more vulnerable to economic shocks.