This paper aims to simulate the economic impacts of the withdrawal of informal workers from the labor market due to the social isolation policy implemented during the Covid‐19 pandemic in Bahia state, Brazil, where 66% of workers work in the informal sector. We also consider the government income compensation policy to make up part of their income. The partial hypothetical extraction method was used in a regional input‐output matrix, base year 2012 with 42 economic sectors. Our simulations show that the withdrawal of informal workers decreases the productive capacity and leads to strong negative impacts on the economy, mainly in the service sectors. On the other hand, the income compensation policy mitigates the negative impacts by about 50%. Moreover, the public administration is the least impacted sector because it is mostly made up of formal workers.
Residential segregation has brought significant challenges to cities worldwide and has important implications for health. This study aimed to assess income segregation in the 152 largest Brazilian cities in the SALURBAL Project. We identify specific socioeconomic characteristics related to residential segregation by income using the Brazilian demographic census of 2010 and calculated the income dissimilarity index (IDI) at the census tract level for each city, subsequently comparing it with Gini and other local socioeconomic variables. We evaluated our results’ robustness using a bootstrap correction to the IDI to examine the consequences of using different income cut-offs in substantial urban and regional inequalities. We identified a two minimum wage cut-off as the most appropriate. We found little evidence of upward bias in the calculation of the IDI regardless of the cut-off used. Among the ten most segregated cities, nine are in the Northeast region, with Brazil's highest income inequality and poverty. Our results indicate that the Gini index and poverty are the main variables associated with residential segregation.