Key Messages

CHAPTER 4

Tunisia: The Link between Dropping Incomes and Living Standards

Federica Alfani, Dorra Dhraief, Vasco Molini, Dan Pavelesku, and Marco Ranzani

Key Messages

• For about half of the Tunisian households interviewed in the five rounds of phone surveys in 2020, living standards have deteriorated compared to the pre-COVID-19 period— particularly among the poor and the bottom 40 percent.

• For about 20 percent of households (almost 40 percent in the bottom 40 percent), living standards have continued to deteriorate throughout the pandemic.

• The pandemic’s negative impact seems to be attributable to changes in employment and labor income; and although employment has bounced back, it is not yet at precrisis levels.

• Although income has rebounded for private sector workers, it has not for the self-employed, largely because of the lack of customers.

• Our results call for enhanced income support to households, particularly the bottom 40 percent, until the economy has fully rebounded.