The effect of income support programs on job search, workplace mobility and COVID-19: International evidence

Abstract

This study examines the effect of Income Support Programs (ISPs) on job search effort, work- place mobility, COVID-19 cases, and mortality growth rates. To identify ISPs’ causal effect, I use the variation in their introductions’ timing across countries and implement a difference-in-difference and multi-event analysis method. I find that ISPs led to a 4.4–8.29 percentage points reduction in workplace mobility and a 6.6–11.6 percentage points reduction in job search effort levels. They also caused a 21.8–47.7 and 17.1–29.7 percentage points reduction in the COVID-19 case growth rate and COVID-19 mortality growth rates, respectively. Using the event analysis estimates, I simulated the counterfactual job search effort, workplace mobility, and the number of COVID-19 cases and mortality without income support programs. The average global job search effort and workplace mobility without ISPs would have been 11.12 and 9.26 percent higher than the observed mean job search effort and workplace mobility. However, these would have come at the cost of 3.69 million and 166, 690 additional COVID-19 cases and mortality than the cases and deaths registered by May 15th.