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COVID-19 Relief Programs and Compliance with Confinement Measures

Author

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  • Deiana, Claudio

    (University of Cagliari)

  • Geraci, Andrea

    (European Commission, Joint Research Centre)

  • Mazzarella, Gianluca

    (European Commission, Joint Research Centre)

  • Sabatini, Fabio

    (Sapienza University of Rome)

Abstract

We study the impact of a COVID-19 relief program on compliance with confinement measures in Italy, the early epicenter of the pandemic. We match information on the allocation of funds across Italian municipalities with data tracking citizens' movements drawn from mobile devices and vehicles' navigation systems, anonymized and aggregated at the municipality level. To assess the role of the program, we exploit a sharp kink schedule in the allocation of funds as a function of past income differentials that generated random treatment assignment in a neighborhood of the threshold point. We find robust evidence that, after the introduction of the program, mobility decreased with the amount of transfers. The impact is economically sizeable and resists bandwidth changes, with stronger effects holding in the proximity of the cut-off and the coefficient stabilizing with distance from the threshold. A battery of placebo tests supports the interpretation of results. Our evidence suggests that authorities could leverage targeted relief programs to nudge compliance with emergency measures at a relatively modest cost.

Suggested Citation

  • Deiana, Claudio & Geraci, Andrea & Mazzarella, Gianluca & Sabatini, Fabio, 2021. "COVID-19 Relief Programs and Compliance with Confinement Measures," IZA Discussion Papers 14064, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14064
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    Cited by:

    1. Fazio, Andrea & Reggiani, Tommaso & Sabatini, Fabio, 2022. "The political cost of sanctions: Evidence from COVID-19," Health Policy, Elsevier, vol. 126(9), pages 872-878.
    2. Mauro Caselli & Andrea Fracasso & Sergio Scicchitano, 2022. "From the lockdown to the new normal: individual mobility and local labor market characteristics following the COVID-19 pandemic in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1517-1550, October.

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    More about this item

    Keywords

    social capital; compliance; mobility; stay-at-home orders; lockdown; COVID-19 policy response; Coronavirus pandemic; Regression Kink Design; COVID-19;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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