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

Bibliographic Data

ID5934191
AuthorsByron J Idrovo-Aguirre (0000-0002-1032-213X), Javier E Contreras-Reyes (0000-0003-1172-5456, University of Valparaíso, corresponding author)
Year2021
Volume10
Issue11
Pages417
Publication date2021-11-02
Open AccessYes
TypeARTICLE
VenueSocial Sciences (JOURNAL)
Journal identifiersISSN: 2076-0760 • E-ISSN: 2076-0760
PublisherMDPI AG (PUBLISHER • IT)
DOI10.3390/socsci10110417
OpenAlexW3210908700
LanguageEN
Citations received2
References cited18

We show statistical evidence that pension fund withdrawals and the Emergency Family Income (EFI) increased the likelihood that a laid off construction worker would reject a proposal for a formal employment contract. This favors the hypothesis that pension fund withdrawals and government subsidies related to the health crisis have, to some extent, contributed to the shortage of formal labor in the construction sector. Based on estimations of the logit model, we found that rejection probability increased with work experience (approximated by the worker's age). For example, the probability of not accepting a formal contract for a highly experienced worker, who withdrew funds from their mandatory private Pension Fund Administrator and received the EFI, increased by 28%. The figure is approximately 2.5 times the rejection probability of a worker with the same experience but without having received this additional income

Actuarial science · Business · Economic shortage · Economics · Government (linguistics · Labour economics · Pension · Subsidy · Work (physics · COVID-19 Pandemic Impacts · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Finance

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