Academic USM analyzes the economic impact of the large number of holidays

Javier Scavia, Professor of the Department of industries, requires that “is certainly a loss that an economy potentially produce when you can do so, however, there are nuances to orthodoxy”.

13 Holidays which fall this year in working days, by automatically providing this 2012 of 7 long weekends, have quite uneasy to the economic sector. And is that says the academic of the Department of industry of the Universidad Santa Maria, Javier Scavia, “is certainly a loss that an economy let produce, when you can potentially do so, however, there are nuances to orthodoxy”.

Economic Impact

While the expert clarified that it is difficult to quantify the real impact that may have on the local economy the number of holidays, also specifies that “its impact will depend on each sector”; Although the Chamber of Commerce of Santiago estimates already indicate would that losses total around USD $500 million, i.e., between 0.5 and a point of monthly GDP projected for each day of the holiday.

“I think that the impact will depend on the sector.” Trade in food and entertainment could be affected positively – if it is not talking of indispensable holidays-, while that will otherwise occur, for example, with sales of materials for construction, clothing, mining sectors, etc. “As the tourism sector and entertainment is a small part of total trade, I assume that the NET will be negative,” precise Scavia.

On if it is relevant for a country like Chile, developing, to implement this type of extensions of holidays, Scavia points out that “while the productivity measures going downward, and in recent years that low was stopped, even experienced a small upside, only effects of measurements of ranking, the large number of holidays not going in the right direction support an improvement in this measure”.

“Obviously most people don’t immediately see these consequences, but it is also true that from the mental point of view is generated a profit expectations, something that is not necessarily captured by the costs in terms of the GDP.” “Moreover, with our very bad distribution of income, is clear that it is not the same hold an additional holiday with high income with low, i.e., is not the same an expectation of plan a trip on a long holiday, who spend it at home to avoid having to do extra expenses,” he points out.

Scavia also highlights that it is difficult to draw strategies to mitigate the impact on the economy, when players already have internalized holidays, so that “all measures that have to do with increase of goals for the days not worked seem, as well as increase the stress of the worker, completely counterproductive”.

“When they legislate holidays is the authority the call to display and promote this type of strategy.” When there are situations in which sellers earn primarily by Commission, an interesting calculation would be to know the cost in terms of salary less than this person to make ends meet. “Would therefore be interesting to know if our labour legislation is prepared to realize that someone to enjoy a holiday, but it becomes relatively quiet end of the month”, he concludes.