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Analysis of Factors Influencing Credit Access of Vietnamese Informal Labors in the Time of COVID-19 Pandemic

Author

Listed:
  • Hung Van Vu

    (Faculty of Political Theory, Thuongmai University, Hanoi 100000, Vietnam)

  • Huong Ho

    (Faculty of Politics, Vietnam Youth Academy, Hanoi 100000, Vietnam)

Abstract

Credit is considered as an essential tool to make informal labor’s income better. In order to improve quality of their life, the state should have some supports them in credit access. This study analyzes factors causing credit access of informal labors to be changed in the time of COVID-19 pandemic. Using survey data collected from 2020 VHSSL (2019–2020), this approach has two models including a binary logit model and a multinomial logit model (MLM). The results revealed that the positive factors including education, material, collateral, credit size, credit source, credit debt which are likely to affect to credit access, however age, family size, ethnicity, interest, paid money are negative. Besides, it also concludes that quality of life of informal labor is considerably influenced by credit access, collateral, credit source, credit debt from the observed samples. Additionally, this paper recommends some policies to enhance informal labor’s access to credit and their quality of life.

Suggested Citation

  • Hung Van Vu & Huong Ho, 2021. "Analysis of Factors Influencing Credit Access of Vietnamese Informal Labors in the Time of COVID-19 Pandemic," Economies, MDPI, vol. 10(1), pages 1-11, December.
    • Handle: RePEc:gam:jecomi:v:10:y:2021:i:1:p:8-:d:711994
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    References listed on IDEAS

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    1. Samuel Sekyi, 2017. "Rural Households' Credit Access and Loan Amount in Wa Municipality, Ghana," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 506-514.
    2. Rajneesh Narula, 2020. "Policy opportunities and challenges from the COVID-19 pandemic for economies with large informal sectors," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 302-310, September.
    3. Adham Sayed & Bin Peng, 2021. "Pandemics and income inequality: a historical review," SN Business & Economics, Springer, vol. 1(4), pages 1-17, April.
    4. Rajneesh Narula, 0. "Policy opportunities and challenges from the COVID-19 pandemic for economies with large informal sectors," Journal of International Business Policy, Palgrave Macmillan, vol. 0, pages 1-9.
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