Socioeconomic inequalities in Chile during the COVID-19 pandemic: A regional analysis of income poverty

TL;DR

This study shows how the pandemic worsened income poverty in Chile, especially for rural, Indigenous, and less-educated people, highlighting the need for long-term solutions.

Contribution

The study introduces a regional analysis of income poverty in Chile during the pandemic, using spatial clustering and logistic regression to identify persistent inequalities.

Findings

Poverty hotspots increased from 6.8% in 2017 to 8.6% in 2020, with rural and Indigenous populations most affected.

Emergency subsidies reduced overall poverty but failed to address structural inequalities linked to education and immigration.

Long-term policies are needed to tackle systemic disparities and ensure sustainable poverty reduction.

Abstract

The COVID-19 pandemic caused an unprecedented economic crisis, intensifying poverty levels in Latin America, particularly in Chile. This study examines the short- and long-term socioeconomic impacts of COVID-19 on income poverty in Chile, focusing on regional disparities, rurality, ethnicity, educational attainment, and immigration. Using data from the Chile National Socioeconomic Characterization Survey (CASEN) for 2017, 2020, and 2022, we analyzed poverty trends across the pre-pandemic, pandemic, and post-pandemic periods. We employed spatial clustering techniques with Local Moran’s I to detect poverty hotspots and applied logistic regression models to identify key sociodemographic factors associated with these hotspots. Our results reveal stark regional disparities, with disproportionately higher poverty rates among rural populations, Indigenous communities, and individuals with lower education levels or immigrant backgrounds. The proportion of individuals in poverty hotspots rose from 6.8% in 2017 to 8.6% in 2020, before slightly declining to 7.7% in 2022. Although emergency monetary subsidies helped reduce overall poverty from 10.8% in 2020 to 6.5% in 2022, these measures were insufficient to address deep-rooted structural inequalities. Our findings underscore the urgent need for targeted, long-term policies that go beyond temporary financial assistance and tackle systemic disparities linked to rurality, ethnicity, education, and immigration. Such measures are essential for achieving sustainable poverty reduction and fostering inclusive economic growth in Chile.

Figures