{"id":139689,"date":"2021-05-13T10:13:56","date_gmt":"2021-05-13T14:13:56","guid":{"rendered":"https:\/\/www.bates.edu\/news\/?p=139689"},"modified":"2021-05-13T14:50:54","modified_gmt":"2021-05-13T18:50:54","slug":"covid-19-income-support-programs-saved-lives-says-bates-economics-professor","status":"publish","type":"post","link":"https:\/\/www.bates.edu\/news\/2021\/05\/13\/covid-19-income-support-programs-saved-lives-says-bates-economics-professor\/","title":{"rendered":"COVID-19 income-support programs save lives, says Bates economics professor"},"content":{"rendered":"\n<p id=\"yui_3_16_0_1_1620910709885_81552\">Massive income-support programs deployed during the pandemic have been more than just a shot in the arm for the world\u2019s economies, says Visiting Assistant Professor of Economics Abraham Asfaw.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/asfaw-abraham-Bates-College-703x900.jpg\" alt=\"\" class=\"wp-image-139693\" width=\"352\" height=\"450\" srcset=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/asfaw-abraham-Bates-College-703x900.jpg 703w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/asfaw-abraham-Bates-College-234x300.jpg 234w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/asfaw-abraham-Bates-College-1200x1536.jpg 1200w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/asfaw-abraham-Bates-College-156x200.jpg 156w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/asfaw-abraham-Bates-College.jpg 1280w\" sizes=\"(max-width: 352px) 100vw, 352px\" \/><figcaption>Visiting Assistant Professor of Economics Abraham Asfaw looks at the public-health benefits of income-support programs during the pandemic.<\/figcaption><\/figure><\/div>\n\n\n\n<p>They\u2019ve been a matter of life and death.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S1570677X21000216#!\">Writing in <em>Economics &amp; Human Biology<\/em><\/a>, Asfaw measured the effects and tradeoffs of income-support programs worldwide during the pandemic, such as paycheck protection and expanded unemployment benefits.<\/p>\n\n\n\n<p>His conclusion: ISPs globally \u201cavoided 3.6 million COVID-19 cases and 166,690 deaths\u201d between Feb. 15 and May 15, 2020, the period of his study.<\/p>\n\n\n\n<p>Asfaw&#8217;s paper, \u201cThe effect of income support programs on job search, workplace mobility, and COVID-19: International evidence,\u201d combines data from several sources, including the <a href=\"https:\/\/covidtracker.bsg.ox.ac.uk\/\">Oxford University COVID-19 Government response tracker<\/a>, <a href=\"https:\/\/www.google.com\/covid19\/mobility\/\">Google community mobility reports<\/a>, and Google job search trends in 178 countries.<\/p>\n\n\n\n<p>The study significantly underscores the need for policymakers to consider public health benefits such as disease prevention and mortality reduction \u201cwhen evaluating the total values of social insurance programs,\u201d writes Asfaw.<\/p>\n\n\n\n<figure class=\"wp-block-image alignfull size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1919\" height=\"1104\" src=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/49996788022_a74b931f1e_o.jpeg\" alt=\"\" class=\"wp-image-139688\" srcset=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/49996788022_a74b931f1e_o.jpeg 1919w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49996788022_a74b931f1e_o-400x230.jpeg 400w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49996788022_a74b931f1e_o-900x518.jpeg 900w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49996788022_a74b931f1e_o-1536x884.jpeg 1536w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49996788022_a74b931f1e_o-200x115.jpeg 200w\" sizes=\"(max-width: 1919px) 100vw, 1919px\" \/><figcaption>In Dublin, Ireland, a tram passes a message of hope along Chancery Street on June 10, 2020, as the country began to reopen after its COVID-19 lockdown. (Photograph by Citiscape, licensed under&nbsp;<a href=\"https:\/\/creativecommons.org\/licenses\/by-nd\/2.0\/\" target=\"_blank\" rel=\"noreferrer noopener\">CC BY-ND 2.0<\/a>)<\/figcaption><\/figure>\n\n\n\n<p>Asfaw\u2019s study is thought to be one of the first to provide evidence of social insurance programs\u2019 effect on job search effort, workplace mobility, and COVID-19 case and mortality growth rates.<\/p>\n\n\n\n<p>Typically \u2014 absent a pandemic, that is \u2014 nations use ISPs to help with \u201cconsumption smoothing,\u201d a term that describes one\u2019s ability to conduct their financial life as usual, such as buying groceries and paying for housing and transportation, despite disruptions.<\/p>\n\n\n\n<p>But during the pandemic, ISPs took on a life-and-death purpose. As countries instituted drastic measures to fight the pandemic, including stay-at-home orders, ISPs made it financially possible for people to achieve physical distancing, including staying away from the in-person workplace.<\/p>\n\n\n\n<p>\u201cIn the presence of a contagious respiratory disease,\u201d writes Asfaw, the benefit of ISPs \u201ccan go beyond consumption smoothing\u201d by \u201creducing workplace contacts and containing the virus\u2019s spread in the community.\u201d&nbsp;<\/p>\n\n\n\n<p>(Asfaw does acknowledge that individuals could have used other \u201ccoping mechanisms,\u201d besides ISPs, such as \u201ccredit cards, savings, loans from friends and family, to smooth their consumption and practice social distancing, reducing physical contacts in workplaces and other areas.\u201d)<\/p>\n\n\n\n<figure class=\"wp-block-image alignfull size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1919\" height=\"1134\" src=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/33212889791_9e18841eb8_o.jpeg\" alt=\"Daily commute, New Yor City style.\" class=\"wp-image-139691\" srcset=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/33212889791_9e18841eb8_o.jpeg 1919w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/33212889791_9e18841eb8_o-400x236.jpeg 400w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/33212889791_9e18841eb8_o-900x532.jpeg 900w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/33212889791_9e18841eb8_o-1536x908.jpeg 1536w\" sizes=\"(max-width: 1919px) 100vw, 1919px\" \/><figcaption><br>Titled &#8220;Movement focus&nbsp;#3, Chelsea, New York City,&#8221; this photograph was taken in the Manhattan neighborhood on June 20, 2020, during the city&#8217;s phased reopening. (Photograph by Andreas Komodromos, licensed under <a href=\"https:\/\/creativecommons.org\/licenses\/by-nd\/2.0\/\">CC BY-NC 2.0<\/a>)<\/figcaption><\/figure>\n\n\n\n<p>Asfaw notes that there is a tradeoff when it comes to ISPs. Critics have long argued that such programs hurt the economy by lowering unemployed workers\u2019 incentive to apply for jobs and return to the workforce. As governments loosened unemployment eligibility criteria and increased benefits in the early months of the pandemic, those <a href=\"https:\/\/www.npr.org\/sections\/money\/2021\/03\/30\/982270517\/what-unemployment-insurance-tells-us-about-work-during-a-pandemic\">concerns have been front-of-mind among policymakers<\/a>.<\/p>\n\n\n\n<p>Indeed, Asfaw found that ISPs during the pandemic did lead to a \u201creduction in job-search effort levels\u201d of between 6.6 and 11.6 percentage points in economies throughout the world.&nbsp;<\/p>\n\n\n\n<p>At the same time, ISPs, by allowing workers, whether employed or not, to stay away from the in-person workplace, reduced the growth rate of COVID-19 cases (between 21.8 to 47.7 percentage points) and reduced COVID-19 mortality growth rates (between 17.1 to 29.7 percentage points).&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image alignfull size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1919\" height=\"1079\" src=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/49882634871_316bcef5a2_o.jpeg\" alt=\"Fenn Place - UniSA City West. There aren't many students around this normally bustling laneway - I got lucky. Silver Efex Pro 2: Kodak 100 TMAX Pro  with 25% Yellow filter\" class=\"wp-image-139690\" srcset=\"https:\/\/www.bates.edu\/news\/files\/2021\/05\/49882634871_316bcef5a2_o.jpeg 1919w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49882634871_316bcef5a2_o-400x225.jpeg 400w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49882634871_316bcef5a2_o-900x506.jpeg 900w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49882634871_316bcef5a2_o-1536x864.jpeg 1536w, https:\/\/www.bates.edu\/news\/files\/2021\/05\/49882634871_316bcef5a2_o-200x112.jpeg 200w\" sizes=\"(max-width: 1919px) 100vw, 1919px\" \/><figcaption>A sole student walks along the usually busy Fenn Place near the University of South Australia on May 7, 2020. (Photograph by Chris, aka MoiVous), licensed under <a href=\"https:\/\/creativecommons.org\/licenses\/by-nd\/2.0\/\" target=\"_blank\" rel=\"noreferrer noopener\">CC BY-NC-ND 2.0<\/a>)<\/figcaption><\/figure>\n\n\n\n<p>Had people not had ISPs, and instead been out job hunting or been forced to work in-person, Asfaw\u2019s research indicates it would have \u201ccome at the cost\u201d of an additional 3.69 million COVID-19 cases and 166,690 deaths worldwide between Feb. 15 and May 15, 2020. (<a href=\"https:\/\/www.worldometers.info\/coronavirus\/coronavirus-death-toll\/\">According to various sources<\/a>, the actual death toll during that time was around 320,000 worldwide.)<\/p>\n\n\n\n<p>Asfaw mentions other public-health benefits of ISPs, noting that loss of income due to job loss can adversely affect one\u2019s mental health and potentially increase deaths by suicide.&nbsp;<\/p>\n\n\n\n<p>\u201cTherefore, to the degree ISPs improve general health and reduce non-COVID-19 mortality, the effects of the programs documented here <em>underestimate<\/em> their actual&nbsp;total health benefits,\u201d he writes.<\/p>\n\n\n\n<p>Asfaw adds, \u201cThe findings from this paper also strengthen the argument for a stronger social insurance program that can automatically replace lost income due to unemployment caused by a pandemic or other types of aggregate shocks.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Massive income-support programs during the pandemic have been more than just a shot in the arm for the world\u2019s economies, says Visiting Assistant Professor of Economics Abraham Asfaw.<\/p>\n","protected":false},"author":104,"featured_media":139761,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_hide_ai_chatbot":false,"_ai_chatbot_style":"","associated_faculty":[],"_Page_Specific_Css":"","_bates_restrict_mod":false,"_table_of_contents_display":false,"_table_of_contents_location":"","_table_of_contents_disableSticky":false,"_is_featured":false,"footnotes":"","_bates_seo_meta_description":"","_bates_seo_block_robots":false,"_bates_seo_sharing_image_id":0,"_bates_seo_sharing_image_twitter_id":0,"_bates_seo_share_title":"","_bates_seo_canonical_overwrite":"","_bates_seo_twitter_template":""},"categories":[4],"tags":[12135],"class_list":["post-139689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-academic-life","tag-covid-19"],"_links":{"self":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/139689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/users\/104"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/comments?post=139689"}],"version-history":[{"count":10,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/139689\/revisions"}],"predecessor-version":[{"id":139752,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/139689\/revisions\/139752"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/media\/139761"}],"wp:attachment":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/media?parent=139689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/categories?post=139689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/tags?post=139689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}