Social stability challenged by Covid-19: Pandemics, inequality and policy responses

The public health measures implemented to limit the COVID-19 pandemic are likely affect economic inequalities. In this paper we first provide a theoretical framework analyse how income inequality contributes shaping trade-off between lockdown and contagion. Our empirical analysis on EU countries shows that is significantly increase poverty magnitude of change larger in more unequal countries. To avoid social collapse, must consider as an additional source fragility, while supranational, coordinated fiscal policies needed interest all European economies.