The Covid-19 Conundrum in the Developing World: Protecting Lives or Protecting Jobs?

10 Pages Posted: 13 Apr 2020

Abstract

It is almost certain that the world economy is entering a recession of historic proportions; how bad things get will depend on how governments manage the Covid-19 pandemic. At the core of the problem lies a very difficult choice: whether to "flatten the curve" of the epidemic or whether to flatten the curve of the recession. It is unlikely that both can be achieved and, in this case, it is better to address the tradeoff heads-on rather than try to ignore it or assume it doesn't exist. Because developing countries are less prepared to deal with the consequences of an economic downturn, they might not be able to afford "social distancing" policies for extended periods.

Keywords: COVID-19, jobs, labor and development, developing countries, dynamic optimization

JEL Classification: I3, J20, J46, J48

Suggested Citation

Robalino, David A., The Covid-19 Conundrum in the Developing World: Protecting Lives or Protecting Jobs?. IZA Discussion Paper No. 13136, Available at SSRN: https://ssrn.com/abstract=3573306

David A. Robalino (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
213
Abstract Views
705
rank
170,211
PlumX Metrics