Effects of COVID-19 on Household Welfare in Benin: A Microsimulation Approach

Benin recorded the first confirmed case of COVID-19 on March 16, 2020 and the first death was recorded on April 6, 2020. The evolution of the pandemic was characterised by two waves: the first wave started by a rapidly growth of the number of infections and deaths during May to September 2020 before slowing down. The second wave spanned from June to August 2021, where both the number of new cases and deaths increased more than in the first wave. The Benins government responses to contain the spread of the pandemic were, but not limited to the closure of land borders, the closure of schools, the prohibition of public gatherings, restrictions on public transportation, the closure of restaurants and bars, systematic wearing of masks and hand disinfection. The COVID-19 testing convenient was made at a cost of 45 USD and the COVID-19 testing or vaccination was mandatory to access all public services on September 13, 2021. All these policy responses to contain the pandemic may have many economic and social implications. We use a microsimulation approach to determine the effects of the pandemic on the households income and health expenditures. This policy brief presents the main findings and highlights some lessons for policy.