COVID-19 Infections, Labour Market Shocks, and Subjective Well-Being

27 Pages Posted: 15 Sep 2020

See all articles by Ferdi Botha

Ferdi Botha

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

John de New

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Multiple version iconThere are 2 versions of this paper

Date Written: August 19, 2020

Abstract

This is the first paper to present novel findings on how simultaneously (a) labour market shocks and (b) infections in the household, directly due to COVID-19, have impacted on life satisfaction and domain satisfactions. Using data from a world-wide online survey of almost 5,700 respondents across six countries, we estimate the associations of COVID-19-related labour market shocks and COVID-19 infection with life satisfaction and a range of domain satisfactions. Directly due to COVID-19, experiencing either (i) a reduction in salary and working hours, or (ii) unemployment or filing for unemployment benefits is significantly associated with lower reported satisfaction with family life, family health, available health services, and finances. The relationship is especially large for financial satisfaction. Reporting any COVID-19 labour market shock is also related to lower life satisfaction. Persons in households that have experienced a COVID-19 infection report significantly lower satisfaction with life, health, family life, and finances. Noteworthy is that labour market shocks are much more important in explaining subjective well-being compared to COVID-19 infections. The findings highlight the wide range of subjective well-being domains adversely affected by shocks to the labour market and health brought about by the COVID-19 pandemic.

Keywords: COVID-19; coronavirus; labour market shocks; subjective well-being

JEL Classification: I10; I31; J65

Suggested Citation

Botha, Ferdi and de New, John, COVID-19 Infections, Labour Market Shocks, and Subjective Well-Being (August 19, 2020). Melbourne Institute Working Paper No. 14/20, Available at SSRN: https://ssrn.com/abstract=3690087 or http://dx.doi.org/10.2139/ssrn.3690087

Ferdi Botha (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

John De New

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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