CHRISTL, MICHAEL, De Poli, Silvia , Hufkens, Tine , Peichl, Andreas , Ricci, Mattia

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Int. Tax Public Financ.

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https://www.scopus.com/inward/record.uri?eid=2-s2.0-85130751301&doi=10.1007%2fs10797-022-09738-w&partnerID=40&md5=4d93a7f6aa43151c3d9b6407265f6af2

01/08/2023

000800994300001

2-s2.0-85130751301

10.1007/s10797-022-09738-w

In this paper, we investigate the impact of the COVID-19 pandemic on German household income in 2020 using a micro-level approach. We combine a microsimulation model with novel labour market transition techniques to simulate the COVID-19 shock on the German labour market. We find the consequences of the labour market shock to be highly regressive with a strong impact on the poorest households. However, this effect is nearly entirely offset by automatic stabilisers and discretionary policy measures. We explore the cushioning effect of these policies in detail, showing that short-time working schemes and especially the one-off payments for children are effective in cushioning the income loss of the poor.

COVID-19; EUROMOD; Microsimulation; STW; Automatic stabilisers

• MICHAEL CHRISTL