Income Support Programs and COVID-19 in Developing Countries

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Income Support Programs and COVID-19 in Developing Countries

September 20, 2021

The COVID-19 pandemic has threatened the livelihoods of the most vulnerable households in developing countries. In response, several countries have launched income support programs (ISPs). This paper evaluates the likely impact of these programs on the weekly growth rate of confirmed COVID-19 cases and deaths across 62 developing countries between January and December of 2020. Event-study and difference-in-differences estimates suggest that implementation of ISPs reduced the weekly growth rate of cases and deaths. Results also indicate that ISPs may have worked better at reducing the growth of cases and deaths related to COVID-19 in middle-income countries and the growth rate of cases in low-income countries as well as those countries with high informality in the labor market.