Risk of poverty and Covid-19: an analysis of fragility at the territorial level

In 2020, the COVID-19 pandemic severely impacted poverty risks due to the health emergency crisis and the social consequences of the economic shock. However, these risks are not evenly distributed across the population and the territorial context. Using data from the Extraordinary Survey of Italian Households (ESIH) data collected by the Bank of Italy in November 2020 and February 2021, the chapter aims to investigate which sub-populations are exposed to the risk of poverty the most, especially in terms of worsening economic conditions resulting from the crisis caused by the health emergency. From a risk factor level, the focus is on the level of urbanization of the municipality and macro area of residence as well as, the individual’s position in the labour market. Empirical findings show the most affected households were (or felt) already poor before the pandemic. Considering the effectiveness and distribution of the containment strategies, results highlight that households living in small and medium municipalities in Northern and Central areas and the self-employed, unemployed and temporary workers are the most exposed to income reduction during the first year of the crisis caused by the COVID-19 virus.