Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach

In Rwanda, as elsewhere, different types of households experienced the economic effects of COVID-19 differently. We use a microsimulation approach to show the importance of these differences to better understand COVID-19’s impacts on their income and poverty status. Main results: Nationally, during...

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Main Authors: Diao, Xinshen, Rosenbach, Gracie, Spielman, David J., Aragie, Emerta A.
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2021
Subjects:
Online Access:https://hdl.handle.net/10568/142082
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author Diao, Xinshen
Rosenbach, Gracie
Spielman, David J.
Aragie, Emerta A.
author_browse Aragie, Emerta A.
Diao, Xinshen
Rosenbach, Gracie
Spielman, David J.
author_facet Diao, Xinshen
Rosenbach, Gracie
Spielman, David J.
Aragie, Emerta A.
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description In Rwanda, as elsewhere, different types of households experienced the economic effects of COVID-19 differently. We use a microsimulation approach to show the importance of these differences to better understand COVID-19’s impacts on their income and poverty status. Main results: Nationally, during the lockdown period between March and May 2020, the simulation results estimate declines in household income by 33 percent on average. The urban population experienced the largest declines, averaging 40 percent during this period. Unlike patterns seen with other shocks, middle-income households experienced the sharpest declines in income during the lockdown of an estimated 33 to 35 percent. The share of individuals falling into poverty was highest among those in urban, middle income (Ubudehe 2) households (27 percent). However, the greatest absolute number of individuals in poverty remained concentrated in rural areas during the lockdown. Poor individuals in the lowest expenditure quintile remain in the most severe poverty, with average expenditures during the lockdown estimated at 54 percent below the poverty line. Under both the fast and slow post-COVID economic recovery scenarios used in the simulations, household incomes nearly return to pre-COVID levels for all household categories by the end of 2020. However, these results do not capture the potential longterm impacts of the substantial shocks of the pandemic to incomes, assets, and individual wellbeing. These modeling results suggest that targeting should be a central component of the design and implementation of social protection programs and economic recovery policies to support a diverse set of beneficiaries. These beneficiaries include rural farming households and poor households, as well as nonagricultural household, and households in the middle expenditure quintiles.
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spelling CGSpace1420822025-12-08T10:11:39Z Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach Diao, Xinshen Rosenbach, Gracie Spielman, David J. Aragie, Emerta A. income covid-19 household income quarantine poverty In Rwanda, as elsewhere, different types of households experienced the economic effects of COVID-19 differently. We use a microsimulation approach to show the importance of these differences to better understand COVID-19’s impacts on their income and poverty status. Main results: Nationally, during the lockdown period between March and May 2020, the simulation results estimate declines in household income by 33 percent on average. The urban population experienced the largest declines, averaging 40 percent during this period. Unlike patterns seen with other shocks, middle-income households experienced the sharpest declines in income during the lockdown of an estimated 33 to 35 percent. The share of individuals falling into poverty was highest among those in urban, middle income (Ubudehe 2) households (27 percent). However, the greatest absolute number of individuals in poverty remained concentrated in rural areas during the lockdown. Poor individuals in the lowest expenditure quintile remain in the most severe poverty, with average expenditures during the lockdown estimated at 54 percent below the poverty line. Under both the fast and slow post-COVID economic recovery scenarios used in the simulations, household incomes nearly return to pre-COVID levels for all household categories by the end of 2020. However, these results do not capture the potential longterm impacts of the substantial shocks of the pandemic to incomes, assets, and individual wellbeing. These modeling results suggest that targeting should be a central component of the design and implementation of social protection programs and economic recovery policies to support a diverse set of beneficiaries. These beneficiaries include rural farming households and poor households, as well as nonagricultural household, and households in the middle expenditure quintiles. 2021-07-26 2024-05-22T12:09:55Z 2024-05-22T12:09:55Z Brief https://hdl.handle.net/10568/142082 en https://doi.org/10.2499/p15738coll2.134450 Open Access application/pdf International Food Policy Research Institute Diao, Xinshen; Rosenbach, Gracie; Spielman, David J.; and Aragie, Emerta. 2021. Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach. Rwanda SSP 2. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134484.
spellingShingle income
covid-19
household income
quarantine
poverty
Diao, Xinshen
Rosenbach, Gracie
Spielman, David J.
Aragie, Emerta A.
Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach
title Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach
title_full Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach
title_fullStr Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach
title_full_unstemmed Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach
title_short Synopsis: Assessing the impacts of COVID-19 on household incomes and poverty in Rwanda: A microsimulation approach
title_sort synopsis assessing the impacts of covid 19 on household incomes and poverty in rwanda a microsimulation approach
topic income
covid-19
household income
quarantine
poverty
url https://hdl.handle.net/10568/142082
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