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

Diego Orlando Robles Cariaga
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Diego Orlando Robles Cariaga: Monash University

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

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.

Keywords: Chile; COVID -19; Unemployment; Difference-in-Difference JEL Classification: C21; E24; J6 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ban
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:wrkesp:29

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