Implications of COVID-19 labour market shocks for inequality in financial wellbeing

Determinants of individuals' objective and subjective financial fragility during the COVID-19 pandemic

We examine determinants of the objective and subjective financial fragility of 2100 individuals across Australia, France, Germany, and South Africa during the COVID-19 pandemic. Objective financial fragility reflects individuals' (in)ability to deal with unexpected expenses, while subjective financial fragility reflects their emotional response to financial demands. Controlling for an extensive set of socio-demographics, we find that negative personal experiences during the pandemic (i.e., reduced or lost employment; COVID-19 infection) are associated with higher objective and subjective financial fragility. However, individuals' cognitive (i.e., financial literacy) as well as non-cognitive abilities (i.e., internal locus of control; psychological resilience) help to counteract this higher financial fragility. Finally, we examine the role of government financial support (i.e., income support; debt relief) and find that it is negatively related to financial fragility only for the economically weakest households. Our results have implications for public policymakers, providing levers for reducing individuals' objective and subjective financial fragility.

Personal well-being and financial threats in Peruvian adults: The mediating role of financial well-being

Crises negatively affect the economy of a country, increasing financial risk, as they affect work activities and the well-being of the population. This study aimed to examine the mediating role of financial well-being in the relationship between personal well-being and financial threats. A predictive cross-sectional study was conducted. The variables analyzed were personal well-being, financial threats, and financial well-being. A total of 416 Peruvian adults from the three regions of Peru participated. The mean age was M = 35.36, SD = 8.84, with a range of 19-62 years. To represent the statistical mediation model, a structural equation model (SEM) was used. The analysis showed that the variables were significantly related (p < 0.001). The theoretical model indicated a perfect mediation, also obtaining a good fit, χ ²(168) = 394.3, CFI = 0.931, RMSEA = 0.057, SRMR = 0.062. The study showed that personal well-being serves as a basis for promoting financial well-being and this contributes to the reduction of financial threats.

The macroeconomic implications of disease pandemics in developing countries: An application of Covid-19 in Uganda

This study examines the economy-wide implications of infectious diseases, taking the case of the Covid-19 pandemic in Uganda. Covid-19 containment measures generated social and economic consequences. We employ a recursive dynamic computable general equilibrium model to evaluate the implications on the economy. We design scenarios to mimic the containment policies via labour supply, labour productivity, government healthcare spending and remittance inflows. Results indicate that growth in sector output declines when compared to the no-Covid-19 baseline. However, export growth rates are predicted to be higher. Increased government healthcare spending induces expansion in the healthcare output, but the sectors that produce the intermediate inputs for healthcare production do not grow in tandem. Household welfare declines, and the loss is largest among the top quintile households in both rural and urban areas. Policymakers should revisit Uganda's industrial policy towards domestic production of intermediate inputs to critical domestic sectors such as healthcare. Also, accelerate rural infrastructure development particularly the road network, to facilitate an integrated rural economy induced by the shift in labour and enterprise towards rural areas.

Assessment of the Similarity of the Situation in the EU Labour Markets and Their Changes in the Face of the COVID-19 Pandemic

The aim of the study is to assess the similarity of the situation in the EU labour markets and their evolution using selected indicators in the period before and during the COVID-19 pandemic. The benchmark are the countries that most closely meet the Sustainable Development Goals related to the labour market. We use quarterly data from Eurostat presenting the basic indicators of the labour market: unemployment, employment, and activity rates. We analyse all indicators for the total population, young people, and people aged 55+. We assess the similarity of the situation using the TOPSIS method and similarity of changes by means of the Dynamic Time Warping. We obtain homogeneous groups of countries due to similarity of time series using hierarchical clustering. We conduct the analysis in two periods: the years 2018 and 2019 (pre-pandemic period) and from the beginning of 2020 to the present (pandemic period). The composition of the clusters in the pre-pandemic and pandemic periods is different. The impact of the COVID-19 pandemic on the situation in the labour market can be noted. This is a result of different degree of development of labour markets, which had an impact on coping with the effects of the crisis caused by the pandemic.

Internal migration and child health: An investigation of health disparities between migrant children and left-behind children in China

Using data from the China Education Panel Survey (CEPS), this study empirically examines the association between internal migration and child health through an investigation of health disparities between migrant children and left-behind children in China. The results show that, in comparison with being left behind, migrating with parents significantly improves children’s self-reported health, height-for-age z-score (HAZ) and BMI-for-age z-score (BAZ), and reduces their frequency of sickness. These findings remain robust to a suite of robustness checks. Furthermore, the health effects of internal migration are more prominent for children with a rural hukou compared with urban ones. Although migrant children are more likely to experience teacher discrimination, they have higher levels of parental care, family relationships, and peer relationships relative to their left-behind counterparts, which indicates possible mechanisms behind the association between children’s migration and health. Our findings underline the importance of policy improvement and evidence-based interventions aiming at reducing involuntary parent-child separation and facilitating the development in health of disadvantaged children in developing countries like China.

COVID-19: Financial well-being of older Australians in times of crisis

OBJECTIVE

The aim of the present study was to explore the impact of the COVID-19 pandemic on the financial well-being of older Australian retirees.

METHODS

Thirty Australian retirees (16 females and 14 males), older than 65 years of age, were asked 'Have your finances been affected by the events surrounding COVID-19?'. Data were analysed using Braun and Clarke's six-step approach, and Bronfenbrenner's socio-ecological model was utilised to analyse thematic responses at individual, household, community and societal levels.

RESULTS

Two COVID-19-related themes emerged from interviews: COVID-19 and increased financial stress and COVID-19 and frustration with digital banking.

CONCLUSIONS

This study revealed that the financial well-being of older Australians and especially self-funded retirees has been negatively impacted by the COVID-19 pandemic. Participants felt financially worse off primarily due to the volatility of the financial markets, the need to support adult children and the increased cost of living. Also, participants expressed their hesitation and frustration with digital banking services, and their desire for greater personal contact with financial institutions, particularly during times of uncertainty.

Working through Disaster Risk Management to Support Regional Food Resilience: A Case Study in North-Eastern Australia

As a consequence of disasters such as pandemics and severe weather events, Australian communities often face ‘food shortages’ resulting from the reduced availability of food and reduced access to available food. These food shortages can be acutely felt by vulnerable populations, comprising people in communities who are already dealing with social or economic disadvantages. Despite growing calls to ensure food access for everyone during and following disasters, efforts are still largely ad hoc, champion based and highly variable in their reliability and quality of supply. There is also a disconnect between disaster-related food relief and improving business continuity towards local economic resilience. This study sought to tackle these challenges by exploring how ‘local food access’ could be integrated within disaster management mechanisms, to support the most vulnerable and also contribute to local economic resilience. This paper discusses the findings of a study undertaken in Cairns, a north-eastern Australian regional authority, and involves a review of disaster management planning and policy artifacts, an online survey, and semi-structured interviews with stakeholders providing care and advocacy for vulnerable populations. Synthesizing the findings, we present a disaster-management-focused ‘Local Food Access Model’ that connects shorter food supply chains to improved disaster response, resilience and contingency-planning agendas. Applying this model to Cairns, we conclude the multiple benefits and immediate stakeholder readiness for a virtual (online) food resilience and contingency hub, to enable the connection of local food availability and access information within existing disaster management processes. The research method used, the model, and the case-specific findings provide government decision makers with a useful process, a local food-access schematic and a case study example to support immediate improvements in disaster resilience for vulnerable populations.

Stressors and Other Pandemic-related Predictors of Prospective Changes in Psychological Distress

Background

Numerous studies have documented mental health challenges during the COVID-19 pandemic. Few studies included pre-pandemic levels of mental health or were comprehensive in assessing factors likely associated with longer-term mental health impacts.

Methods

Analyses used prospective data from a subset of participants in the nationwide Cancer Prevention Study-3 (CPS-3) United States cohort (N=2,359; 1,534 women; 825 men) who completed surveys in 2018 and during the COVID-19 pandemic (July-September 2020). Logistic regressions examined associations of pandemic-related stressors, sociodemographic and other predictors with (i) overall psychological distress (PD) and depression and anxiety separately during the COVID-19 pandemic and (ii) change in PD from 2018 to during the pandemic (low/low; high to low; low to high; high/high).

Findings

During the pandemic, 10% of participants reported moderate-to-severe PD and almost half (42%) reported at least mild PD. Pandemic PD levels were associated with pre-pandemic PD (female OR=5.65; male OR=9.70), financial stressors (female OR=2.48; male OR=3.68), and work/life balance stressors (female OR=3.03; male OR=3.33) experienced since the pandemic began. These stressors also predicted an escalation from low PD in 2018 to high PD during the pandemic. Factors associated with high PD at both time points included younger age, female sex, and financial stressors.

Interpretation

These results highlight the importance of regular mental health assessment and support among those with a history of mental health problems and those experiencing pandemic-related stressors, such as those with caregiving responsibilities or job changes.

Funding

The American Cancer Society funds the creation, maintenance, and updating of the CPS-3.

Loss of financial well-being in the COVID-19 pandemic: Does job stability make a difference?

This article aims to assess the loss of financial well-being in the COVID-19 pandemic. The developed theoretical model identifies the impacts of the perception of financial risk and financial anxiety on financial well-being. It also seeks, through a comparative analysis, to assess whether public servants, due to their status of job stability in Brazil, are less likely to have the effects of the pandemic than private employees. A survey was carried out on 1222 Brazilians with structural equation modeling and multi-group invariance tests. The results indicate that lower financial well-being is influenced by the level of financial anxiety and financial risk. Public servants perceive fewer losses in financial well-being, anxiety and risks than other professions. In the pandemic context, where the risks of unemployment and loss of income are increased, job stability works like an insurance, allowing public servants greater financial security and then minor losses of financial well-being. Evidence indicates that in countries where a large percentage of workers have temporary or informal jobs, the challenge of reducing the financial impacts of the pandemic will be great. Interventions to alleviating anxiety and public policies of income transfer and reduction of unemployment are instruments to reduce the loss of financial well-being.

Factors Associated with Financial Security, Food Security and Quality of Daily Lives of Residents in Nigeria during the First Wave of the COVID-19 Pandemic

An online survey was conducted to identify factors associated with financial insecurity, food insecurity and poor quality of daily lives of adults in Nigeria during the first wave of the COVID-19 pandemic. The associations between the outcome (experience of financial loss, changes in food intake and impact of the pandemic on daily lives) and the explanatory (age, sex, education level, anxiety, depression, HIV status) variables were determined using logistic regression analysis. Of the 4439 respondents, 2487 (56.0%) were financially insecure, 907 (20.4%) decreased food intake and 4029 (90.8%) had their daily life negatively impacted. Males (AOR:0.84), people who felt depressed (AOR:0.62) and people living with HIV -PLHIV- (AOR:0.70) had significantly lower odds of financial insecurity. Older respondents (AOR:1.01) had significantly higher odds of financial insecurity. Those depressed (AOR:0.62) and PLHIV (AOR:0.55) had significantly lower odds of reporting decreased food intake. Respondents who felt anxious (AOR:0.07), depressed (AOR: 0.48) and who were PLHIV (AOR:0.68) had significantly lower odds of reporting a negative impact of the pandemic on their daily lives. We concluded the study findings may reflect a complex relationship between financial insecurity, food insecurity, poor quality of life, mental health, and socioeconomic status of adults living in Nigeria during the COVID-19 pandemic.

The impact of repeated mass antigen testing for COVID-19 on the prevalence of the disease

In the absence of effective vaccination, mass testing and quarantining of positive cases and their contacts could help to mitigate pandemics and allow economies to stay open. We investigate the effects of repeated mass testing on the COVID-19 pandemic caused by the SARS-CoV-2 virus, using data from the first ever nationwide rapid antigen testing implemented in Slovakia in autumn 2020. After the first round of testing, only districts above an ex ante unknown threshold of test positivity were re-tested. Comparing districts above and below the threshold, we provide evidence that repeated mass antigen testing can temporarily reduce the number of new infections. Our results suggest that mass testing coupled with the quarantining of positive cases and their contacts could be an effective tool in mitigating pandemics. For lasting effects, re-testing at regular intervals would likely be necessary.

Social Capital Theory, Social Exchange Theory, Social Cognitive Theory, Financial Literacy, and the Role of Knowledge Sharing as a Moderator in Enhancing Financial Well-Being: From Bibliometric Analysis to a Conceptual Framework Model

A person’s financial well-being (FWB) is the complete contentment gained from one’s present financial condition. This has a powerful impact on the entire achievement of an employee’s “well-being.” Researchers, financial analysts, financial planners, educationists, and economists have explored the “enablers” to improve employees’ living standards by investigating the possible “FWB” resources for decades. There is no literature available to show the connection between social capital theory, social exchange theory (SET), social cognitive theory (SCT), financial literacy and FWB, and employees’ financial knowledge sharing a moderator to expand the complete FWB.

Time for 'Green' during COVID-19? Inequities in Green and Blue Space Access, Visitation and Felt Benefits

We hypothesized that visits to green and blue spaces may have enabled respite, connection and exercise during the COVID-19 pandemic, but such benefits might have been inequitably distributed due to differences in financial difficulties, opportunities to work from home, and localized restrictions in spatial mobility generated by 'lockdowns'. A nationally representative online and telephone survey conducted in 12-26 October on the Social Research Centre's Life in AustraliaTM panel (aged ≥ 18 y, 78.8% response, N = 3043) asked about access, visitation, and felt benefits from green and/or blue spaces. Increasing financial difficulty was associated with less time in and fewer visits to green and/or blue spaces, as well as fewer different types visited. Financial difficulty was also associated with feelings that visits to green and/or blue space had less benefit for maintaining social connection. Working from home was associated with more frequent and longer visitation to green and/or blue spaces, as well as discovery of ones previously unvisited. Working from home was also associated with increased levels of exercise and respite resulting from visits to green and/or blue spaces. Residents of Melbourne, a city of 4.9 million who were in 'lockdown' at the time of the survey, appeared more likely to benefit from visits to green and/or blue spaces than residents of Sydney, Australia's largest city at 5.2 million, who were not in lockdown. Residents of Melbourne compared with Sydney reported consistently increased visitation of, discovery of, and greater levels of various felt benefits derived from green and/or blue spaces, including more respite, connection, and exercise. Comparatively shorter distances to preferred green and/or blue spaces and closure of alternative settings at the time of the survey completion in Melbourne compared with Sydney may provide partial explanation, though more acute responses to experiencing green and/or blue spaces within highly cognitively demanding antecedent conditions posed by lockdown are also plausible and warrant further investigation with other health indicators. These results were robust to adjustment for a range of covariates including preferences for natural settings, which were consistently associated with greater levels of green and/or blue space visitation and felt benefits. Collectively, these results indicate that parallel efforts to generate (or renew) felt connection to natural settings, to increase working from home opportunities, and to mitigate financial difficulties may be important to help maximize the population health benefits of urban planning strategies intended to improve the availability of, and to reduce inequities in access to, green and blue spaces. Benefits felt more commonly by people living through lockdown underlines the role previous investments in green and blue space have played in enabling coping during the COVID-19 pandemic.

The distributional consequences of social distancing on poverty and labour income inequality in Latin America and the Caribbean

This paper estimates the potential distributional consequences of the first phase of the COVID-19 lockdowns on poverty and labour income inequality in 20 Latin American and Caribbean (LAC) countries. We estimate the share of individuals that are potentially able to remain active under the lockdown by taking into account individuals' teleworking capacity but also whether their occupation is affected by legal workplace closures or mobility restrictions. Furthermore, we compare the shares under the formal (de jure) lockdown policies assuming perfect compliance with the shares under de facto lockdowns where there is some degree of non-compliance. We then estimate individuals' potential labour income losses and examine changes in poverty and labour income inequality. We find an increase in poverty and labour income inequality in most of the LAC countries due to social distancing; however, the observed changes are lower under de facto lockdowns, revealing the potential role of non-compliance as a coping strategy during the lockdowns. Social distancing measures have led to an increase in inequality both between and within countries. Lastly, we show that most of the dispersion in the labour income loss across countries is explained by the sectoral/occupational employment structure of the economies.