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COVID-19 infections, labour market shocks, and subjective well-being

Author

Listed:
  • Ferdi Botha

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne; ARC Centre of Excellence for Children and Families over the Life Course)

  • John P. de New

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne; ARC Centre of Excellence for Children and Families over the Life Course)

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.

Suggested Citation

  • Ferdi Botha & John P. de New, 2020. "COVID-19 infections, labour market shocks, and subjective well-being," Melbourne Institute Working Paper Series wp2020n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2020n14
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    References listed on IDEAS

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    Cited by:

    1. Ferdi Botha & John P. New & Sonja C. New & David C. Ribar & Nicolás Salamanca, 2021. "Implications of COVID-19 labour market shocks for inequality in financial wellbeing," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 655-689, April.
    2. Botha, Ferdi & de New, John P. & de New, Sonja C. & Ribar, David C. & Salamanca, Nicolás, 2020. "COVID-19 labour market shocks and their inequality implications for financial wellbeing," GLO Discussion Paper Series 661, Global Labor Organization (GLO).

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    More about this item

    Keywords

    COVID-19; coronavirus; labour market shocks; subjective well-being;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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