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dc.titleThe Effect of COVID-19 on Firms and Employment in Central America
dc.contributor.authorAterido, Reyes
dc.contributor.authorDel Carmen, Giselle
dc.contributor.authorRuiz-Arranz, Marta
dc.contributor.authorStucchi, Rodolfo
dc.contributor.orgunitCountry Department Central America, Haiti, Mexico, Panama and the Dominican Republic
dc.coverageEl Salvador
dc.coverageGuatemala
dc.coverageHonduras
dc.coverageNicaragua
dc.coverageCentral America
dc.date.available2021-07-30T00:00:00
dc.date.issue2021-07-30T00:00:00
dc.description.abstractThis paper assesses the effect of the COVID-19 pandemic on firms and employment in El Salvador, Guatemala, Honduras, and Nicaragua. We use data from The World Bank COVID-19 Business Pulse Surveys and other complementary sources. Our analysis shows that since the COVID-19 outbreak, 1 in 4 formal businesses in El Salvador, Guatemala, Honduras, and Nicaragua have closed, with monthly sales dropping by a third on average across countries. To counter the impact of the crisis, firms opted to decrease total hours worked, reduce wages or furlough workers. Small firms exhibited the largest declines in sales and employment and faced greater liquidity constraints. Firms response in terms of employment was highly correlated to the change in sales and affected by labor regulations. Even though the possibility of telecommuting is limited across Central America, over half of formal firms among Northern Triangle countries and a quarter in Nicaragua started or increased remote work, which helped to cushion the impact on employment. Despite increases in public spending and policies to mitigate the economic and social impacts of the pandemic, few formal firms received government assistance.
dc.format.extent25
dc.identifier.doihttp://dx.doi.org/10.18235/0003576
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Effect-of-COVID-19-on-Firms-and-Employment-in-Central-America.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectCoronavirus
dc.subjectPandemics
dc.subjectFirm Performance
dc.subjectEmployment Rate
dc.subjectWage
dc.subjectTelework
dc.subjectFormal Labor
dc.subjectLiquidity
dc.subjectFemale Employment
dc.subject.jelcodeD22 - Firm Behavior: Empirical Analysis
dc.subject.jelcodeE24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity
dc.subject.jelcodeI18 - Government Policy • Regulation • Public Health
dc.subject.jelcodeJ01 - Labor Economics: General
dc.subject.jelcodeJ23 - Labor Demand
dc.subject.keywordsCOVID-19;COVID-19;COVID-19;COVID-19;COVID-19;Central America;Firms;Sales;Employment
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02262
idb.operationRG-P1688
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