Impact of Job Loss on Household Income during the COVID-19 Pandemic: Results of a Quasi-Experimental Analysisin the Republic of the Congo

Abstract

This study evaluates the average monthly income loss associated with COVID-19-related job losses in households in the Republic of the Congo (ROC). Firstly, the propensity score matching (PSM) method is used for the estimates. Secondly, endogenous switching regression accounts for the
unobserved effect. The data used are from the survey on the impact of the COVID-19 pandemic on the living conditions of Congolese households conducted in 2020 by the National Institute of Statistics of the ROC. The results show, on the one hand, that the PSM method underestimates the assessed impact and, on the other hand, that the increase in household income loss attributed to job loss due to COVID-19 is 232,432.9 XAF on average per month. These results imply several measures (reducing the costs imposed on employers, subsidies, etc.) and the adaptation of labour market regulations to the new realities.