IDEAS home Printed from https://ideas.repec.org/p/wrk/wrkesp/29.html
   My bibliography  Save this paper

The impact of the COVID-19 pandemic on Labour Force Participation in Chile : Evidence from a Difference-in-Differences approach

Author

Listed:
  • Robles Cariaga, Diego Orlando

    (Monash University)

Abstract

Due to the rapid global spread of COVID-19, many governments imposed nationwide closures with direct consequences on people's welfare, and Chile is not far from this scenario. Therefore, this paper aims to investigate the impact of the national lockdown adopted by the Chilean government on employment. To this end, a difference-in-differences (DID) methodology is used to compare the occupational situation of the inhabitants of the Metropolitan Region during the post-treatment period. The empirical results, based on a cross-sectional dataset, indicate that employment was not affected due to the lockdown policies adopted by the Chilean government to curb the spread of COVID-19. However, the results show that women, those living in poorer communes, and those less educated are more likely to lose their jobs.

Suggested Citation

  • Robles Cariaga, Diego Orlando, 2021. "The impact of the COVID-19 pandemic on Labour Force Participation in Chile : Evidence from a Difference-in-Differences approach," Warwick-Monash Economics Student Papers 29, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:29
    as

    Download full text from publisher

    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/29_-_diego_orlando_robles_cariaga.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hacıoğlu-Hoke, Sinem & Känzig, Diego R. & Surico, Paolo, 2021. "The distributional impact of the pandemic," European Economic Review, Elsevier, vol. 134(C).
    2. Krzysztof Karbownik & Anthony Wray, 2019. "Long-Run Consequences of Exposure to Natural Disasters," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 949-1007.
    3. Aum, Sangmin & Lee, Sang Yoon (Tim) & Shin, Yongseok, 2021. "COVID-19 doesn’t need lockdowns to destroy jobs: The effect of local outbreaks in Korea," Labour Economics, Elsevier, vol. 70(C).
    4. Marta Escalonilla & Begoña Cueto & Maria Jose Perez Villadóniga, 2021. "Long-term effects on youth career of entering the labour market during the Great Recession," Applied Economics, Taylor & Francis Journals, vol. 53(49), pages 5643-5657, October.
    5. Palomino, Juan C. & Rodríguez, Juan G. & Sebastian, Raquel, 2020. "Wage inequality and poverty effects of lockdown and social distancing in Europe," European Economic Review, Elsevier, vol. 129(C).
    6. Dayong Dong & Giray Gozgor & Zhou Lu & Cheng Yan, 2021. "Personal consumption in the United States during the COVID-19 crisis," Applied Economics, Taylor & Francis Journals, vol. 53(11), pages 1311-1316, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Gathergood & Fabian Gunzinger & Benedict Guttman-Kenney & Edika Quispe-Torreblanca & Neil Stewart, 2020. "Levelling Down and the COVID-19 Lockdowns: Uneven Regional Recovery in UK Consumer Spending," Papers 2012.09336, arXiv.org, revised Dec 2020.
    2. Vanda Almeida & Salvador Barrios & Michael Christl & Silvia Poli & Alberto Tumino & Wouter Wielen, 2021. "The impact of COVID-19 on households´ income in the EU," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 413-431, September.
    3. Stefanie Stantcheva, 2022. "Inequalities in the times of a pandemic," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(109), pages 5-41.
    4. Aum, Sangmin & Lee, Sang Yoon (Tim) & Shin, Yongseok, 2021. "Inequality of fear and self-quarantine: Is there a trade-off between GDP and public health?," Journal of Public Economics, Elsevier, vol. 194(C).
    5. Stephen Malpezzi, 2023. "Housing affordability and responses during times of stress: A preliminary look during the COVID‐19 pandemic," Contemporary Economic Policy, Western Economic Association International, vol. 41(1), pages 9-40, January.
    6. Thomas Gries & Wim Naudé, 2021. "Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures," Economics of Disasters and Climate Change, Springer, vol. 5(3), pages 329-353, October.
    7. Borja Gambau & Juan C. Palomino & Juan G. Rodríguez & Raquel Sebastian, 2022. "COVID-19 restrictions in the US: wage vulnerability by education, race and gender," Applied Economics, Taylor & Francis Journals, vol. 54(25), pages 2900-2915, May.
    8. Sangmin Aum & Sang Yoon (Tim) Lee & Yongseok Shin, 2022. "Who Should Work from Home During a Pandemic? The Wage-Infection Trade-off," Review, Federal Reserve Bank of St. Louis, vol. 104(2), pages 92-109.
    9. Naudé, Wim, 2020. "Entrepreneurial Recovery from COVID-19: Decentralization, Democratization, Demand, Distribution, and Demography," IZA Discussion Papers 13436, Institute of Labor Economics (IZA).
    10. Ainaa, Carmen & Brunetti, Irene & Mussida, Chiara & Scicchitano, Sergio, 2021. "Who lost the most? Distributive effects of COVID-19 pandemic," GLO Discussion Paper Series 829, Global Labor Organization (GLO).
    11. Carmen Aina & Irene Brunetti & Chiara Mussida & Sergio Scicchitano, 2023. "Distributional effects of COVID-19," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 221-256, March.
    12. Cseres-Gergely, Zsombor & Kecht, Valentin & Le Blanc, Julia & Onorante, Luca, 2024. "The economic impact of general vs. targeted lockdowns: New insights from Italian municipalities," Economic Modelling, Elsevier, vol. 134(C).
    13. Katja Zajc Kejžar & Alan Velić & Jože P. Damijan, 2022. "COVID‐19, trade collapse and GVC linkages: European experience," The World Economy, Wiley Blackwell, vol. 45(11), pages 3475-3506, November.
    14. Jessica Birkholz & Jarina Kühn, 2021. "Entrepreneurship Perception during the first COVID-19 Shock: Mental Representations of Entrepreneurship and Preferences of Business Models during the Pandemic," Bremen Papers on Economics & Innovation 2105, University of Bremen, Faculty of Business Studies and Economics.
    15. Lee, Munseob & Finerman, Rachel, 2021. "COVID-19, commuting flows, and air quality," Journal of Asian Economics, Elsevier, vol. 77(C).
    16. Miescu, Mirela & Rossi, Raffaele, 2021. "COVID-19-induced shocks and uncertainty," European Economic Review, Elsevier, vol. 139(C).
    17. Buhmann, Mara & Pohlan, Laura & Roth, Duncan H.W., 2024. "Economic Shocks and Worker Careers: Has the COVID-19 Pandemic Affected Transitions Out of Unemployment?," IZA Discussion Papers 17268, Institute of Labor Economics (IZA).
    18. Jung, Haeil & Kim, Jun Hyung & Hong, Gihyeon, 2023. "Impacts of the COVID-19 crisis on single-person households in South Korea," Journal of Asian Economics, Elsevier, vol. 84(C).
    19. Carlos Díaz & Sebastian Fossati & Nicolás Trajtenberg, 2022. "Stay at home if you can: COVID‐19 stay‐at‐home guidelines and local crime," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 19(4), pages 1067-1113, December.
    20. Brandily, Paul & Brébion, Clément & Briole, Simon & Khoury, Laura, 2021. "A poorly understood disease? The impact of COVID-19 on the income gradient in mortality over the course of the pandemic," European Economic Review, Elsevier, vol. 140(C).

    More about this item

    Keywords

    Chile ; COVID -19 ; Unemployment ; Difference-in-Difference JEL Classification: C21 ; E24 ; J6;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wrk:wrkesp:29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Margaret Nash (email available below). General contact details of provider: https://edirc.repec.org/data/dewaruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.