The Income Status of Italian Households at the time of Covid-19

The Covid-19 pandemic has had health and economic repercussions. The blocking of productive activities to contrast the spread of the virus has led to an increase in unemployment and a contraction in labour income. This paper analyses the income dynamics of Italian households in three different periods of 2020 – the year of the pandemic outbreak and the adoption of containment measures – as well as future income expectations. Data are drawn from the 2020 “Indagine Straordinaria sulle Famiglie Italiane” of the Bank of Italy. An effective contrast against the economic inequality exacerbated by the pandemic should be based on interventions targeted at those groups economically vulnerable and marginalized before the outbreak of the pandemic.