Measuring the impact of the cr isis on unemployment and household income

Data on household's living conditions that would allow for measuring the impact of the crisis on income and well-being are available with more than one year delay. Therefore, they avoid an early assessment of the impact of the economic shocks. In order to get this current estimation, we propose a nowcasting approach by using different sources of data. Then, this microsimulation method is applied to Italy in order to validate it. Data have been drawn from the European Statistics on Income and Living Conditions Survey for Italy (IT SILC) and from the Labour Force Survey for Italy. The latter data allow us to take into account the changes on the employment status of individuals due to the economic shocks. The validation results support the capability of the model to simulate the effect of the cycle before actual data on income are available.