ABSTRACT
During the pandemic, several countries implemented job retention programmeswith the goal of preserving human capital and supporting a quick recovery. This work uses administrative records to show the impact of the job retention programme in Chile across firms of different industries and sizes. Using a calibrated model based on survey data of households and our administrative register of workers-firms, we then show that the Chilean Employment Protection Law increase aggregate consumption by 0.3% and helped to smooth household consumption during the period between March of 2020 and March of 2021.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 Dingel and Neiman (Citation2020) estimate that only 25.7% of the jobs in Chile can be performed remotely, much less than the rates above 40% in developed economies.