Lockdown and COVID-19: Brazilian Evidence

Abstract

We estimate the impact of strict social distancing policies on isolation, COVID-19 cases and deaths, and employment in Brazil. Compiling social distancing decrees and combining them with publicly available data, we identify a set of treated municipalities that adopted lockdown between May and June 2021 in the State of São Paulo and build a control group with cities from the same Regional Health Departments. We estimate the lockdown effects using a Difference-in-Differences model with two-way fixed effects and staggered adoption. Our findings suggest that the policy increased social distancing one week after its adoption, decreased cases from two weeks on, reduced deaths from four weeks on, and did not significantly impact employment.