COVID-19, lockdown, and the dynamics of subjective well-being

• Main Authors: CHENG, Terence C., KIM, KOH, Kanghyock
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: COVID-19; pandemic; life satisfaction; subjective well-being; individual-level monthly panel data; difference-in-differences; Singapore; Behavioral Economics; Income Distribution; Public Health
• Online Access: https://ink.library.smu.edu.sg/soe_research/2440; https://ink.library.smu.edu.sg/context/soe_research/article/3439/viewcontent/dp13702.pdf
• Institution: Singapore Management University

We provide novel evidence on how the COVID-19 global health and economic crisis is affecting overall life satisfaction and domain-specific satisfaction using data from a monthly longitudinal survey of middle-aged and older Singaporeans. Using a difference-in-differences framework, we document large declines in overall life satisfaction and domain-specific satisfaction during the COVID-19 outbreak, except satisfaction with health. These declines coincide with the introduction of a nationwide lockdown, with life satisfaction remaining below its pre-pandemic levels even after the lockdown is lifted. We also find that individuals who report a drop in household income during the COVID-19 outbreak experience a decline in overall life satisfaction almost twice as large as those who do not report any income loss.