Monetary Fiscal Contributions to Households and Pension Fund Withdrawals during the COVID-19 Pandemic: An Approximation of Their Impact on Construction Labor Supply in Chile
Abstract
:1. Introduction
2. Methodology
2.1. Data Collection
2.2. Statistical Modelling
3. Results
- Of the total, 68% would work in the informal market. Of these, 64% claimed to have received less than US$635 per month. This amount is not substantially different from a construction worker’s average market salary of US$676.91 per month.
- Also, 72% of respondents had debt of less than US$317.50. Assuming most of these credits were acquired in the formal financial market, the amount could count as debt deferral benefit, involving an extension of loan maturity implemented in 2020 by the Financial Market Commission (FMC), which regulates the sector, and the Central Bank.
- Considering informal income and the debt deferral benefit, a percentage of unemployed workers could be receiving an amount higher than the average market salary (around US$676.91 per month). Therefore, from a worker’s short-term perspective, working in the informal market carries greater benefit than cost.
4. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Variable | Definition |
---|---|
PFA withdrawal | The variable takes value 1 if the unemployed worker withdrew less than US$317.50 and value 0 in any other case. |
Received EFI (less than US$317.50) | The variable takes value 1 if the unemployed worker received less than US$317.50 from the EFI and value 0 otherwise. |
PFA withdrawal and EFI received | The variable takes value 1 if the unemployed worker withdrew PFA funds and received the EFI benefit. Value 0 otherwise. |
Worked informally during April–June | The variable takes value 1 if the unemployed worker performed an informal job during the April–May–June quarter and value 0 otherwise. |
Received between US$317.50 and US$635 for informal work during April–June | The variable takes value 1 if the unemployed worker received between US$317.50 and US$635 for performing informal work during the April–May–June quarter and value 0 otherwise. |
Debt payments between US$317.50 and US$635 monthly | The variable takes value 1 if the unemployed worker declared a debt expense between US$317.50 and US$635 per month and value 0 otherwise. |
Expects income increase within 12 months | The variable takes value 1 if the unemployed worker believed income would rise within the next 12 months and value 0 otherwise. |
Gender | The variable takes value 1 if the unemployed worker was male and value 0 if female. |
Age (proxy of work experience) | Continuous variable that measures the unemployed worker’s age in years. |
Has secondary or technical education | The variable takes value of 1 if the unemployed worker attended secondary or technical education. |
Factor | No Applies | Less than US$317.50 | From US$317.50 to US$635 | From US$635 to US$952.50 |
---|---|---|---|---|
Informal work | 32 | 37.9 | 26.2 | 3.9 |
Basic services and food | 0 | 38.7 | 56.5 | 4.4 |
Debts | 0 | 72.1 | 25.7 | 2.2 |
Coefficients | Marginal Effect | |||||
---|---|---|---|---|---|---|
Variable | Value | St. Error | p-Value | Value | St. Error | p-Value |
Constant | −1.893 () | 0.434 | <0.01 | −0.232 () | 0.052 | <0.01 |
PFA withdrawal | −0.719 () | 0.272 | <0.01 | −0.088 () | 0.033 | <0.01 |
Received EFI (less than US$317.50) | −0.309 () | 0.141 | 0.028 | −0.038 () | 0.017 | 0.028 |
PFA withdrawal and EFI received | 1.097 () | 0.331 | <0.01 | 0.135 () | 0.040 | <0.01 |
Worked informally during April–June | −1.320 () | 0.168 | <0.01 | −0.162 () | 0.020 | <0.01 |
US$317.50–US$635 received for informal work during April–June | −0.845 () | 0.184 | <0.01 | −0.104 () | 0.023 | <0.01 |
Between US$317.50 and US$635 monthly debt expense | −0.393 () | 0.168 | 0.020 | −0.048 () | 0.021 | 0.019 |
Expects rising incomes within 12 months | −0.472 () | 0.146 | <0.01 | −0.058 () | 0.018 | <0.01 |
Gender | −0.531 () | 0.170 | <0.01 | −0.065 () | 0.021 | <0.01 |
Age (proxy work experience) | 0.023 () | 0.006 | <0.01 | 0.003 () | 0.001 | <0.01 |
Declared a level of secondary or technical education | −0.303 () | 0.144 | 0.036 | −0.037 () | 0.018 | 0.036 |
N | 1704 | |||||
Wald test | 536.825 () | |||||
p-Value | <0.01 | |||||
Predictive capacity assessment: | ||||||
Accuracy when observed variable = 1 | 61% | |||||
Accuracy when observed variable = 0 | 84% |
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Idrovo-Aguirre, B.J.; Contreras-Reyes, J.E. Monetary Fiscal Contributions to Households and Pension Fund Withdrawals during the COVID-19 Pandemic: An Approximation of Their Impact on Construction Labor Supply in Chile. Soc. Sci. 2021, 10, 417. https://doi.org/10.3390/socsci10110417
Idrovo-Aguirre BJ, Contreras-Reyes JE. Monetary Fiscal Contributions to Households and Pension Fund Withdrawals during the COVID-19 Pandemic: An Approximation of Their Impact on Construction Labor Supply in Chile. Social Sciences. 2021; 10(11):417. https://doi.org/10.3390/socsci10110417
Chicago/Turabian StyleIdrovo-Aguirre, Byron J., and Javier E. Contreras-Reyes. 2021. "Monetary Fiscal Contributions to Households and Pension Fund Withdrawals during the COVID-19 Pandemic: An Approximation of Their Impact on Construction Labor Supply in Chile" Social Sciences 10, no. 11: 417. https://doi.org/10.3390/socsci10110417
APA StyleIdrovo-Aguirre, B. J., & Contreras-Reyes, J. E. (2021). Monetary Fiscal Contributions to Households and Pension Fund Withdrawals during the COVID-19 Pandemic: An Approximation of Their Impact on Construction Labor Supply in Chile. Social Sciences, 10(11), 417. https://doi.org/10.3390/socsci10110417