Incomes, inequalities, and the welfare state during the covid-19 pandemic

The COVID-19 pandemic represents a major global health shock. Besides the impact through illness and death, the pandemic led to substantive economic disruptions.

Although government transfer systems are designed to mitigate income risk, these institutions are unlikely to fully absorb the effects of rare and extreme systemic events.

Indeed, governments worldwide saw a need to extend existing and introduce additional support systems to dampen the negative impact of the pandemic.

In addition to increasing access to various transfer systems and raising generosity, Sweden followed other countries and introduced substantial firm support measures, such as the short-time work allowance, to preserve employment relationships and save jobs.

This project studies the consequences of the COVID-19 pandemic for the economic situation of individuals in Sweden, and the role of the government transfer systems.

How did incomes develop throughout the pandemic and how did already existing government transfers and newly introduced pandemic measures protect incomes? Which groups were particularly hit by the pandemic?

What are the consequences for individuals and families of getting access to different types of government transfer systems?

We provide a solid empirical basis of the functioning of the government transfer system, particularly in times of crisis.

Understanding the reach of the existing transfers and the complementary role of pandemic measures is crucial for future policy development.