We simulate the short-term effect of two months of lockdown on the Italian income distribution. With a static microsimulation model we show how poverty and inequality were effected by restrictions imposed during Coronavirus outbreak in March and April. We estimate a not negligible increase both in poverty and inequality, effects to a large extent mitigated by stimulus measures implemented by the government. However, we show that adopting alternative social protection approaches would have guaranteed a more universal coverage in particular for households more vulnerable to economic shocks.
Keywords: lockdown, inequality, poverty, social protection
Jel Code: D63, H53