Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248380 
Year of Publication: 
2021
Series/Report no.: 
WIDER Working Paper No. 2021/166
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
With data from the World Bank Enterprise Survey, this paper examines how firm-level resilience capabilities interact with government support in the reduction of lay-offs among formal firms in Central America. We estimate two latent variables to approximate resilience-related capabilities before (static) and after (dynamic) the COVID-19 pandemic. We create four counterfactual groups using a Markov chain Monte Carlo simulation to assess which resilience capabilities help firms cope better, with and without government support. We find that support policies play a marginal role among most groups, except in the dynamic resilient group, where receiving government support does shrink the probability of lay-offs.
Subjects: 
capabilities
resilience
COVID-19
Central America
government support
JEL: 
C63
D01
L25
O30
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-106-8
Document Type: 
Working Paper

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