Financial vulnerability of households facing COVID-19 pandemia: A global perspective

Summary

Lockdowns due to COVID-19 and the subsequent crisis have caused many individuals to stop working or substantially reduce their work hours, with the corresponding decrease or loss of the main source of income. The analysis of the financial vulnerability of households becomes especially important.

Key points

• Key points:
• There is a negative relationship between average household financial vulnerability and the country's economic development - measured as a level of per capita income. However, there are other factors that also determine the degree of financial vulnerability.
• If the family reference person is a woman, she is more likely to be part of a financially vulnerable household (holding on for less than 3 months with her own resources), except for Hong Kong.
• In most countries in our sample, the age groups most likely to be in a financially vulnerable household are younger people, and for some economies, those over 64.
• If the family reference person has tertiary education, it guarantees in all economies considered a lower probability of belonging to a vulnerable household.
• If the family reference person is "employed", the household is under-represented in the group of vulnerable households, while there is an over-representation in the case of "unemployed" and "inactive" workers.

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