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Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed

Author

Listed:
  • Marco Caliendo

    (University of Potsdam, IZA Bonn, DIW Berlin, IAB Nuremberg)

  • Daniel Graeber

    (DIW Berlin, University of Potsdam)

  • Alexander S. Kritikos

    (DIW Berlin, University of Potsdam, IAB Nuremberg, IZA Bonn)

  • Johannes Seebauer

    (DIW Berlin, Freie Universität Berlin)

Abstract

We investigate the effect of the COVID-19 pandemic on self-employed people’s mental health. Using representative longitudinal survey data from Germany, we reveal differential effects by gender: whereas self-employed women experienced a substantial deterioration in their mental health, self-employed men displayed no significant changes up to early 2021. Financial losses are important in explaining these differences. In addition, we find larger mental health responses among self-employed women who were directly affected by government-imposed restrictions and bore an increased childcare burden due to school and daycare closures. We also find that self-employed individuals who are more resilient coped better with the crisis.

Suggested Citation

  • Marco Caliendo & Daniel Graeber & Alexander S. Kritikos & Johannes Seebauer, 2022. "Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed," CEPA Discussion Papers 46, Center for Economic Policy Analysis.
    • Handle: RePEc:pot:cepadp:46
    DOI: 10.25932/publishup-54899
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    Cited by:

    1. Block, Joern & Kritikos, Alexander S. & Priem, Maximilian & Stiel, Caroline, 2022. "Emergency-aid for self-employed in the Covid-19 pandemic: A flash in the pan?," Journal of Economic Psychology, Elsevier, vol. 93(C).
    2. Irene Bertschek & Joern Block & Alexander S. Kritikos & Caroline Stiel, 2024. "German financial state aid during Covid-19 pandemic: Higher impact among digitalized self-employed," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 76-97, January.
    3. Nguyen, Bach & Tran, Hai-Anh & Stephan, Ute & Van, Ha Nguyen & Anh, Pham Thi Hoang, 2024. "“I can't get it out of my mind” - Why, how, and when crisis rumination leads entrepreneurs to act and pivot during crises," Journal of Business Venturing, Elsevier, vol. 39(4).

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    More about this item

    Keywords

    self-employment; COVID-19; mental health; gender; representative longitudinal survey data; PHQ-4 score; resilience;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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