Government emergency aid and perceived financial security in COVID-19: evidence from a sample of vulnerable women in Brazil

Abstract

PurposeThe purpose of this study is to examine if public policy satisfaction is related with perceived financial security. The public policy examined is an emergency income policy in Brazil.Design/methodology/approachThe authors used a questionnaire to interview a random sample of 235 single-parent women who received Emergency Aid (EA) resources in Brazil during the pandemic. The questionnaire included measures of financial security, financial anxiety, financial resilience and profile aspects. The authors applied a multiple regression approach to identify the determinants of financial security during the pandemic.FindingsOur findings show that factors such as satisfaction with the emerging income policy and financial resilience are positively related to perceived financial security. Financial anxiety, financial fragility and job loss in the pandemic are negatively related with perceived financial security.Research limitations/implicationsWhile our results correspond to a random probabilistic sample of women residing in southern Brazil, they may not be generalizable to Brazil as a whole.Practical implicationsThis study provides evidence of the financial situation in the pandemic for the lives of economically vulnerable women. The research encourages government and financial institutions to understand the unique challenges faced by vulnerable populations during the pandemic and analyzes the direct results of EA. The study contributes to the establishment of policies to support vulnerable populations, encouraging security and financial resilience.Originality/valueThis research is innovative in its analysis of women’s financial situations during the pandemic, taking into consideration both behavioral aspects and profiles. Our focus on a specific case of emergency income policy adds to the understanding of the relation of such policies on vulnerable populations.