Impact of private and public initiatives on individuals' employment and income during the COVID-19 pandemic: evidence from Peru


  • Samuel Arturo Mongrut Department of Finance, Universidad del Pacifico, Lima, Peru and FACPYA, Universidad Autonoma de Nuevo Leon, San Nicolas de los Garza, Mexico
  • Vivian Cruz Department of Economics and Finance, Universidad EAFIT, Medellin, Colombia
  • Daniela Pacussich Department of Finance, Universidad del Pacifico, Lima, Peru


Personal income, Pandemic, Public policy, Unemployment



The purpose of this paper is to determine the impact of private and public initiatives (financial literacy, entrepreneurship, remote work and government aid) on individual job loss and decrease in income during the COVID-19 pandemic in Peru.


The authors used an unbalanced panel data analysis with the National Household Survey for 2019–2020. The hypotheses are tested with a probit panel data model since the dependent variables are binary.


The study findings indicate that financial preparedness reduced the probability of having a decrease in income, but only to informal workers in metropolitan Lima. Furthermore, entrepreneurship helped mainly female informal workers to reduce their probability of becoming unemployed in metropolitan Lima. Besides, the implementation of remote work as a substitute of face-to-face work was not enough to avoid the decrease in income in the case of informal workers and it was only effective to avoid unemployment in the case of formal workers in metropolitan Lima. Finally, public aid proved to be instrumental in mitigating the decrease in income, but only to informal workers in Metropolitan Lima.

Research limitations/implications

The study results only apply for the first year of the pandemic.

Practical implications

Policymakers should focus on increasing the financial preparedness of informal workers, especially in provinces.

Social implications

Policymakers must expand unemployment benefits, and design public aid programs targeting informal workers in provinces.


This is the first study that analyses the impact of private and public initiatives on the decrease in income and unemployment situation of Peruvian individuals during the outbreak of the COVID-19 pandemic.



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How to Cite

Mongrut, S. A., Cruz, V., & Pacussich, D. (2024). Impact of private and public initiatives on individuals’ employment and income during the COVID-19 pandemic: evidence from Peru. Journal of Economics, Finance and Administrative Science, 29(57), 57–76. Retrieved from