Towards Shock-Responsive Social Protection: Lessons from the COVID-19 Response in Bangladesh – Estimates from the Microsimulation

This report presents the methodology and results of a microsimulation based on a partial equilibrium modelling framework using nationally representative household-level data for Bangladesh. The findings include an estimate of the potential impact of COVID-19 on poverty in the country based on a model that assumes heterogeneity of impact across individuals and households depending on the type and sector of employment. Moreover, the model is used to assess the effectiveness, coverage, and adequacy of the social protection response to COVID-19. The microsimulation results complement a larger Bangladesh country case study that documents the way in which social protection programmes, processes, and delivery systems have been used to respond to the COVID-19 crisis.