Dr. Karina Doorley:

The comparison with the Covid pandemic is an interesting one because it is a good example of how targeted and timely measures were introduced that did not fully insulate everybody from the impact of the pandemic but did fully insulate the bottom fifth of the income distribution from income loss due to job loss. The effects of the pandemic unemployment payment and the employment wage subsidy scheme were extremely progressive across the income distribution. They gave something to all points of the income distribution but focused on the bottom fifth and the second quintile as well. The bottom half of the income distribution was well-insulated. The measures taken were targeted and timely and they had run-out dates, which were then extended when it was required. It is a good example of how to implement measures like this in a way that is flexible and targeted.