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Adverse Shocks and Economic Insecurity: Evidence from Chile and Mexico

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  • Javier Espinosa
  • Jorge Friedman
  • Carlos Yevenes
Abstract
This paper uses multinomial logit to analyze economic insecurity for Chile and Mexico from household surveys. It analyzes the effect changes in well-being, age, health, wealth, employment status, gender, and education have on economic insecurity. The results show that the most significant variable is current exposure to adverse events, the second most significant is age, and the third is health. The current exposure to adverse events produces great anxiety and concern about and the inability to recover from these bad events. Older households assign higher probabilities to negative prospects and are thus subject to higher levels of economic insecurity. This also occurs when the household head is seriously ill. The effect of gender and wealth on negative expectations is very small, while education only affects Mexico, and self-employment affects only Chile. Finally, the similarities between Chile and Mexico provide evidence of identifiable patterns for economic insecurity in Latin American countries.

Suggested Citation

  • Javier Espinosa & Jorge Friedman & Carlos Yevenes, 2014. "Adverse Shocks and Economic Insecurity: Evidence from Chile and Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 141-158, May.
    • Handle: RePEc:bla:revinw:v:60:y:2014:i:s1:p:s141-s158
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    File URL: http://hdl.handle.net/10.1111/roiw.12052
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    References listed on IDEAS

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    2. Olga Cantó & David O. Ruiz, 2015. "The Contribution of Income Mobility to Economic Insecurity in the US and Spain during the Great Recession," Research on Economic Inequality, in: Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 109-152, Emerald Group Publishing Limited.
    3. Kozera, Agnieszka & Stanisławska, Joanna & Głowicka-Wołoszyn, Romana, 2016. "Financial Security Of Polish Households," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 41(3).
    4. Prieto, Joaquin, 2021. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 112490, London School of Economics and Political Science, LSE Library.
    5. Andrzej Woloszyn & Joanna Stanislawska & Romana Głowicka-Woloszyn & Agnieszka Kozera & Anna Rosa, 2021. "Multidimensional Assessment of Polish Farm Household Financial Security by TOPSIS and Generalised Distance Measure," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 534-553.
    6. Marina Romaguera de la Cruz, 2017. "Economic insecurity in Spain: A multidimensional analysis," Working Papers 448, ECINEQ, Society for the Study of Economic Inequality.
    7. Marina Romaguera‐de‐la‐Cruz, 2020. "Measuring Economic Insecurity Using a Counting Approach. An Application to Three EU Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(3), pages 558-583, September.
    8. Joaquín Prieto, 2021. "A multidimensional approach to measuring economic insecurity: The case of Chile," Working Papers 591, ECINEQ, Society for the Study of Economic Inequality.
    9. Joaquín Prieto, 2022. "A Multidimensional Approach to Measuring Economic Insecurity: The Case of Chile," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 823-855, September.
    10. Prieto Suarez, Joaquin, 2022. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 114623, London School of Economics and Political Science, LSE Library.
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