  This paper relies on a microsimulation framework to undertake an analysis of
the distributional implications of the COVID-19 crisis over three waves. Given
the lack of real-time survey data during the fast moving crisis, it applies a
nowcasting methodology and real-time aggregate administrative data to calibrate
an income survey and to simulate changes in the tax benefit system that
attempted to mitigate the impacts of the crisis. Our analysis shows how
crisis-induced income-support policy innovations combined with existing
progressive elements of the tax-benefit system were effective in avoiding an
increase in income inequality at all stages of waves 1-3 of the COVID-19
emergency in Ireland. There was, however, a decline in generosity over time as
benefits became more targeted. On a methodological level, our paper makes a
specific contribution in relation to the choice of welfare measure in assessing
the impact of the COVID-19 crisis on inequality.
