2021/09/19 by Hernández-Solano, Alan, Jhair López-López, López-López, Jhair +4
Economics, Econometrics and Finance · Mathematics · Social Sciences · #COVID-19 Pandemic Impacts #COVID-19 epidemiological studies #COVID-19 pandemic #Economywide impacts #Income distribution #Income, Poverty, and Inequality #Poverty #Social policies
paper · doi:10.47872/laer.v31.67
openalex publication_date 2021/09/19 · openalex created_date 2022/01/25 · openalex updated_date 2026/07/27
The health crisis caused by the spread of COVID-19 has caused a profound social and economic disruption in Mexico. Our purpose in this paper is to contribute to the knowledge about the economic impact of the pandemic in Mexico and to evaluate social policy options to mitigate its effects. We do so based on a multisectoral-multiplier model and the most recent Social Accounting Matrix for Mexico, with which we estimate the direct and indirect impacts of COVID-19 as well the likely effects of two alternatives for mitigating them: an unconditional cash transfer scheme for households living in poverty, and the establishment of an unemployment insurance program for workers who have lost their jobs during the pandemic. We find that the first alternative alleviates more value added and loss of income, and thus has a greater effect in reducing inequality and the incidence of poverty.