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Protecting mental health during periods of financial stress: Evidence from the Australian Coronavirus Supplement income support payment

Author

Listed:
  • Ferdi Botha

    (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne)

  • Peter Butterworth

    (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne)

  • Roger Wilkins

    (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne)

Abstract

This paper investigates whether the Australian government’s Coronavirus Supplement, a temporary income support payment for unemployed jobseekers during the height of the COVID-19 pandemic, protected mental health by lowering financial stress. We use unique nationally representative data on 3,843 Australian adults over the period 6 April 2020 to 10 May 2021. We find that the Coronavirus Supplement payment significantly reduced reported financial stress, and lower financial stress was associated with lower mental distress. The Coronavirus Supplement was successful in protecting community mental health, indirectly through its effect of reducing financial stress. The findings provide support for temporary income support packages to protect mental health during periods of increased financial stress.

Suggested Citation

  • Ferdi Botha & Peter Butterworth & Roger Wilkins, 2021. "Protecting mental health during periods of financial stress: Evidence from the Australian Coronavirus Supplement income support payment," Melbourne Institute Working Paper Series wp2021n31, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2021n31
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    References listed on IDEAS

    as
    1. Benjamin W Nelson & Adam Pettitt & Jessica E Flannery & Nicholas B Allen, 2020. "Rapid assessment of psychological and epidemiological correlates of COVID-19 concern, financial strain, and health-related behavior change in a large online sample," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-16, November.
    2. Butterworth, Peter & Rodgers, Bryan & Windsor, Tim D., 2009. "Financial hardship, socio-economic position and depression: Results from the PATH Through Life Survey," Social Science & Medicine, Elsevier, vol. 69(2), pages 229-237, July.
    3. Simpson, Julija & Albani, Viviana & Bell, Zoe & Bambra, Clare & Brown, Heather, 2021. "Effects of social security policy reforms on mental health and inequalities: A systematic review of observational studies in high-income countries," Social Science & Medicine, Elsevier, vol. 272(C).
    4. Bubonya, Melisa & Cobb-Clark, Deborah A. & Ribar, David C., 2019. "The reciprocal relationship between depressive symptoms and employment status," Economics & Human Biology, Elsevier, vol. 35(C), pages 96-106.
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    Cited by:

    1. Jeong, Soyun & Fox, Ashley M., 2023. "Enhanced unemployment benefits, mental health, and substance use among low-income households during the COVID-19 pandemic," Social Science & Medicine, Elsevier, vol. 328(C).
    2. Mari, Gabriele, 2024. "Pandemic Income Support Programs and Adolescent Mental Health in the UK, Ireland and Australia," SocArXiv pzr4k, Center for Open Science.

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    More about this item

    Keywords

    Mental health; financial stress; Coronavirus; income support; Australia;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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