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Analysis of the distributional effects of COVID-19 and state-led remedial measures in South Africa

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Listed:
  • Helen Barnes
  • Gabriel Espi-Sanchis
  • Murray Leibbrandt
  • David McLennan
  • Michael Noble
  • Jukka Pirttilä
  • Wynnona Steyn
  • Brenton van Vrede
  • Gemma Wright

Abstract

This paper explores the impact of the first wave of the COVID-19 pandemic in South Africa on income poverty and inequality in South Africa. Using a static tax-benefit microsimulation model with input datasets that were adjusted to reflect people's earned incomes just before the pandemic (March 2020) and during the first national lockdown (April 2020), we investigate how well the social protection system in South Africa was able to mitigate the economic losses to the public.

Suggested Citation

  • Helen Barnes & Gabriel Espi-Sanchis & Murray Leibbrandt & David McLennan & Michael Noble & Jukka Pirttilä & Wynnona Steyn & Brenton van Vrede & Gemma Wright, 2021. "Analysis of the distributional effects of COVID-19 and state-led remedial measures in South Africa," WIDER Working Paper Series wp-2021-68, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-68
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    References listed on IDEAS

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    1. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2012. "Automatic stabilizers and economic crisis: US vs. Europe," Journal of Public Economics, Elsevier, vol. 96(3), pages 279-294.
    2. Xavier Jara & Lourdes Montesdeoca & Iva V. Tasseva, 2021. "The role of automatic stabilizers and emergency tax-benefit policies during the COVID-19 pandemic in Ecuador," WIDER Working Paper Series wp-2021-4, World Institute for Development Economic Research (UNU-WIDER).
    3. Vimal Ranchhod & Reza Daniels, 2020. "Labour market dynamics in South Africa in the time of COVID-19: Evidence from wave 1 of the NIDS-CRAM survey," SALDRU Working Papers 265, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Bassier, Ihsaan & Budlender, Joshua & Zizzamia, Rocco & Leibbrandt, Murray & Ranchhod, Vimal, 2021. "Locked down and locked out: Repurposing social assistance as emergency relief to informal workers," World Development, Elsevier, vol. 139(C).
    5. Ihsaan Bassier & Joshua Budlender & Rocco Zizzamia & Ronak Jain, 2023. "The labour market and poverty impacts of COVID‐19 in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 91(4), pages 419-445, December.
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    Cited by:

    1. Gasior, Katrin & Jara, H. Xavier & Makovec, Mattia, 2024. "Assessing the effectiveness of social protection measures in mitigating COVID-19-related income shocks in the European union," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 583-605.
    2. Köhler, Timothy & Bhorat, Haroon & Hill, Robert & Stanwix, Benjamin, 2023. "Lockdown stringency and employment formality: evidence from the COVID-19 pandemic in South Africa," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 57, pages 1-3.
    3. Sam Jones & Ivan Manhique, 2021. "Informal freelancers in the time of COVID-19: Insights from a digital matching platform in Mozambique," WIDER Working Paper Series wp-2021-95, World Institute for Development Economic Research (UNU-WIDER).
    4. Glenn Abela, 2022. "Assessing the impacts of the COVID-19 wage supplement scheme: A microsimulation study," CBM Working Papers WP/06/2022, Central Bank of Malta.
    5. Michael Rogan & Caroline Skinner, 2022. "The COVID-19 crisis and the South African informal economy: A stalled recovery," WIDER Working Paper Series wp-2022-40, World Institute for Development Economic Research (UNU-WIDER).
    6. Mahler,Daniel Gerszon & Yonzan,Nishant & Lakner,Christoph, 2022. "The Impact of COVID-19 on Global Inequality and Poverty," Policy Research Working Paper Series 10198, The World Bank.
    7. Timothy Köhler & Robert Hill & Haroon Bhorat, 2022. "The effect of wage subsidies on job retention: Evidence from South Africa during the COVID-19 pandemic," WIDER Working Paper Series wp-2022-114, World Institute for Development Economic Research (UNU-WIDER).
    8. Wright, Gemma & Noble, Michael & Barnes, Helen & Gasior, Katrin, 2023. "Adaptive social protection in Indonesia – stress-testing the effect of a natural disaster on poverty and vulnerability," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA1/23, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.

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