Table 7

Relationship between financial preparedness and decrease in income according to formal and informal workers

Formal workersInformal workers
VariablesDecrease in incomeDecrease in incomeDecrease in incomeDecrease in income
(1)(2)(3)(4)
Financial preparedness−0.242−0.0697−0.162***−0.0637
(0.238)(0.285)(0.0534)(0.0695)
Financial preparedness × 2020 −0.560 −0.231**
 (0.527) (0.105)
Gender0.1370.139−0.0929−0.0964
(0.272)(0.271)(0.0657)(0.0658)
Year 20200.861***1.244***0.538***0.655***
(0.266)(0.471)(0.0483)(0.0724)
Urban0.1330.1471.469***1.469***
(0.372)(0.371)(0.167)(0.167)
Constant0.787***0.692**−0.127**−0.169***
(0.282)(0.287)(0.0592)(0.0625)
Observations6706707,4377,437
Number of households5285285,2345,234

Note(s): Standard errors in parentheses, ***p < 0.01, **p < 0.05, *p < 0.1

This table shows the results according to two sets of samples: formal and informal workers. The dependent variable is decrease in income that takes the value one if the person's income diminished from 2019 to 2020 and the value of zero otherwise. Financial preparedness is a dummy variable that takes the value one if the person had any banking instrument such as bank accounts and loans and had extra income to his/her main job during 2019 and zero otherwise. Gender takes the value of one if the person is a male and zero otherwise. The year 2020 is a dummy variable that takes the value of one in 2020 and zero otherwise. Urban is a variable that takes the value of one if the person comes from Lima Metropolitan area and zero otherwise. Financial preparedness × 2020 is an interaction variable that multiplies the Financial Preparedness dummy for 2020 times the Year 2020 dummy

Source(s): ENAHO. Own elaboration

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