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“Stay at home (if you can)”: informal employment and COVID-19 in Mexico

Author

Listed:
  • Joana Cecilia Chapa Cantú

    (Facultad de Economía Universidad Autónoma de Nuevo León)

  • Carlos Emmanuel Saldaña Villanueva

    (Facultad de Economía Universidad Autónoma de Nuevo León)

  • Edgar Mauricio Luna Domínguez

    (Facultad de Economía Universidad Autónoma de Nuevo León)

Abstract

This paper explores the relationship between residential confinement to reduce the spread of the COVID-19 virus, seen as a public policy, and how it affects the informal labor sector, as well as the responseof individuals to the pandemic in the states of Mexico. Forming panels for various levels of informality applied to panel vector auto-regressive (PVAR) shows that staying at home as public policy becomes more effective as informality decreases. In addition, the response of individuals to an increase in the spread of the pande-mic depends on the level of informality: for states with lower rates of informality, individuals respond to a higher concentration of residential confinement. But for states with a higher level of informality, the evidence is not significant. The paper considers the role of informality in the development of an effective public policy.

Suggested Citation

  • Joana Cecilia Chapa Cantú & Carlos Emmanuel Saldaña Villanueva & Edgar Mauricio Luna Domínguez, 2023. "“Stay at home (if you can)”: informal employment and COVID-19 in Mexico," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 15(1), pages 135-155.
    • Handle: RePEc:col:000443:020962
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • F69 - International Economics - - Economic Impacts of Globalization - - - Other
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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