The determinants of job losses due to the COVID-19 pandemic in small Island developing states

Abstract

This paper investigates the determinants of job losses due to the COVID-19 in the small island developing states of the Caribbean. Utilising a survey of 1979 firms in the Caribbean and a probit regression model, the study identifies the key factors that might lead a firm to retrench staff. Two of the most important factors that impacted on job losses were the ease of doing business and innovation. Investing in the ease of doing business within the Caribbean therefore seems to be not only an economic good, but a social benefit as well. The findings of the study also support another use of innovation: as a response to crises.

Impact Statement

This study identifies the key factors influencing job losses in Caribbean small island developing states during COVID-19. It underscores the importance of strategic investments in the business environment for both economic and social benefits. The findings also highlight the role of innovation as a vital response to crises, emphasizing its capacity to mitigate job losses and enhance resilience.

Keywords:

• COVID-19
• unemployment
• labour market
• Caribbean

JEL codes:

• J21
• C25
• O31
• L52

Reviewing Editor:

• Robert Read
• University of the West Indies
• Barbados

Subjects:

• Economics and Development
• Economics
• Industry & Industrial Studies

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 https://www.doingbusiness.org/en/rankings?region=latin-america-and-caribbean.

2 https://www.doingbusiness.org/en/rankings?region=latin-america-and-caribbean.

Additional information

Notes on contributors

Stephanie Pascal

Stephanie Pascal is an intern in the Research and Economic Department of the Central Bank of Barbados.