Title

Small Firms and the Pandemic: Evidence From Latin America

Author(s)

Christopher Neilson Christopher Neilson (Princeton University)

Maria Guerrero Maria Guerrero (UCLA)

John Humphries John Humphries (Yale University)

Naomi Shimberg Naomi Shimberg (Yale University)

Gabriel Ulyssea Gabriel Ulyssea (UCL)

Abstract

This paper studies the effects of the COVID-19 pandemic on small businesses between March and November 2020 using new survey data on 35,000 small businesses in eight Latin American countries. We document that the pandemic had large negative impacts on employment and beliefs regarding the future, which in turn predict meaningful economic outcomes in the medium-term. Despite the unprecedented amount of aid, policies had limited impact for small and informal firms. These firms were less aware of programs, applied less, and received less assistance. This may have lasting consequences, as businesses that received aid reported better outcomes and expectations about the future.

Creation Date

2021-10

Section URL ID

Paper Number

651

URL

https://dataspace.princeton.edu/bitstream/88435/dsp01g732dd130/3/651.pdf

File Function

Jel

I10, D22

Keyword(s)

COVID-19, small business, Latin America

Suppress

false

Series

1