According to the University of Chile, more than 200 thousand people from Santiago are not looking for work due to the IFE

The Extension of the Universal Emergency Family Income (IFE) for the months of October and November of this year, promoted last August by the Government in an attempt to stop the possibility of opening a fourth retirement of pension funds, is affecting job recovery, the Microdata Center of the Faculty of Economics and Business of the University of Chile warned this Wednesday.

According to the results of the Survey of Occupation and Unemployment in Greater Santiago released this day by the agency, of the total number of inactive people received by IFE and who do not want to work-about 1.6 million people-, 12.6 percent stated that they would accept a job offer if they were not receiving this subsidy, which corresponds to 211 thousand citizens of the capital.

In an interview with Speaking of, from Cooperative, the director of the Microdata Center, Lorena Flores, stated that While receiving that state transfer is not incompatible with having a job, people might be thinking otherwise Or, in some cases, the amount of the IFE could exceed the income that could be generated by being employed, with the advantage of not having to pay contributions or transportation.

“With this one can say – it is not the only cause – that It is important to understand that (the IFE) is not a subsidy that today is helping the job search“said the commercial engineer from” Casa de Bello “with a master’s degree in Development Studies from the University of New South Wales (Australia).

“Subsidies, in that sense, change preferences a little, because what they come to do is that I choose between receiving the Universal IFE and the labor IFE, although they are not incompatible, but my perception is that the majority of the People do not know it and, therefore, they feel that they will lose the IFE Universal if they go out to work, being that it is not like that. This affects the decision to go out and look for work“, he pointed.

Along these lines, Flores called on the authorities to promote a “very strong” communication campaign to clarify to IFE beneficiaries that state support will not be lost for having a job.

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