This study examines the economic impacts of mobility restrictions during the COVID-19 lockdown in Italy, using near real-time data from Facebook. The authors model the change in mobility as an exogenous shock and identify two key effects: (1) municipalities with higher fiscal capacity are more affected by the lockdown, and (2) mobility restrictions are more pronounced in municipalities with higher inequality and lower per capita income. The analysis reveals that while richer municipalities experience greater economic losses, the poorest individuals within these municipalities are disproportionately impacted. The findings suggest the need for targeted fiscal measures to support both the poor and rich municipalities, to mitigate the economic consequences of the lockdown.This study examines the economic impacts of mobility restrictions during the COVID-19 lockdown in Italy, using near real-time data from Facebook. The authors model the change in mobility as an exogenous shock and identify two key effects: (1) municipalities with higher fiscal capacity are more affected by the lockdown, and (2) mobility restrictions are more pronounced in municipalities with higher inequality and lower per capita income. The analysis reveals that while richer municipalities experience greater economic losses, the poorest individuals within these municipalities are disproportionately impacted. The findings suggest the need for targeted fiscal measures to support both the poor and rich municipalities, to mitigate the economic consequences of the lockdown.