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The impact of the removal of Zero-COVID policies on subjective well-being: Evidence from a digital world

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  • Cui, Zhihan
  • Liu, Lu
  • Zhuang, Castiel Chen

Abstract

Administrative restrictions on public mobility may impose significant well-being impacts on society. For instance, there has been a wide discussion on the psychological effects of lockdown policies during the pandemic. However, there is limited knowledge regarding the consequences of the policy transition and the uncertainty that arises from shifting from tight to loose regulations. The unexpected removal of Zero-COVID policies in China provides a special opportunity to study how policy uncertainty may affect mental health or subjective well-being. We use the Baidu Index data to test the effects of switching toward a “live-with-COVID” policy and the consequent rapid COVID spread on the frequency of well-being related search terms in China. Through a three-phase difference-in-differences approach with multiple years to check parallel sentiment trends, we find a substantial increase in fear and social dysfunction during the Transition Period when COVID-related restrictions were not fully lifted, as well as in the following Free-Spread Period. In comparison, the increase of anxiety mainly took place in the Transition Period. However, searches for anger and negative behaviors stayed relatively stable. Our results suggest that the removal of Zero-COVID policies, especially the Transition Period that generated policy uncertainty, significantly affected people’s mental health.

Suggested Citation

  • Cui, Zhihan & Liu, Lu & Zhuang, Castiel Chen, 2023. "The impact of the removal of Zero-COVID policies on subjective well-being: Evidence from a digital world," Economics Letters, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:ecolet:v:229:y:2023:i:c:s0165176523002148
    DOI: 10.1016/j.econlet.2023.111189
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    References listed on IDEAS

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    1. Andrew E. Clark & Anthony Lepinteur, 2022. "Pandemic Policy and Life Satisfaction in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(2), pages 393-408, June.
    2. Brodeur, Abel & Clark, Andrew E. & Fleche, Sarah & Powdthavee, Nattavudh, 2021. "COVID-19, lockdowns and well-being: Evidence from Google Trends," Journal of Public Economics, Elsevier, vol. 193(C).
    3. Rui Albuquerque & Yrjo Koskinen & Shuai Yang & Chendi Zhang, 2020. "Resiliency of Environmental and Social Stocks: An Analysis of the Exogenous COVID-19 Market Crash," The Review of Corporate Finance Studies, Society for Financial Studies, vol. 9(3), pages 593-621.
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    More about this item

    Keywords

    Mental health; Subjective well-being; Policy transition; Uncertainty; Big data;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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