Impact of government transfers on financial resilience: Analysis for Latin American countries in the post-COVID

This study examines the impact of government transfers on financial resilience in Latin American house-
holds during the post-COVID-19 period.The methodology used is creating a multidimensional resilience
indicator, based on financial information from the individuals surveyed; this research evaluates the effec-
tiveness of government transfers on people’s ability to cope with shocks that affect their income. The
application of the linear regression model shows that there is a significant relationship between govern-
ment transfers and the improvement in people’s economic capacity, showing that digital transfers generate
a more significant positive effect than cash transfers. The findings also reveal significant disparities in
resilience across demographic groups, with women, older adults, individuals with lower education levels,
and those in the lowest income quintiles being more financially vulnerable. The study emphasizes the
need to strengthen government transfer programs to improve financial resilience among the most vulnera-
ble populations in Latin American regions.