Income Losses and Subjective Well-Being: Gender and Ethnic Inequalities during the Covid-19 Lockdown Period in the UK

COVID-19 has become a global health pandemic forcing governments introducing unprecedented steps to contain the spread of the virus. On the 23rd of March, 2020, the UK government addressed the nation to announce extraordinary measures as a response to slow down the spread of the coronavirus, which have influenced the well-being and finances of millions of people. As a result people had to make difficult adjustments and to follow different coping strategies in order to respond to income losses. The main objective of this study is to examine the impact of various coping strategies, due to the lockdown measures, on the respondents’ subjective well-being by gender and ethnic background. We apply a difference-in-differences framework using data from the UK Household Longitudinal Study (UKHLS) combined with the UKHLS COVID-19 survey conducted in April 2020. Furthermore, using the Life Satisfaction Approach (LSA), we estimate the well-being costs of the coping strategies adopted that denote the amount required to revert individual’s well-being into the levels were before Covid-19 period. The results show that coping strategies with the earning losses have a significant detrimental impact on well-being and the related costs range between £250-3,500, which are significantly varied by gender and ethnic group.JEL Classification: C1, I14, I31

Income Losses and Subjective Well-Being: Gender and Ethnic Inequalities during the Covid-19 Lockdown Period in the UK

COVID-19 has become a global health pandemic forcing governments introducing unprecedented steps to contain the spread of the virus. On the 23rd of March, 2020, the UK government addressed the nation to announce extraordinary measures as a response to slow down the spread of the coronavirus, which have influenced the well-being and finances of millions of people. As a result people had to make difficult adjustments and to follow different coping strategies in order to respond to income losses. The main objective of this study is to examine the impact of various coping strategies, due to the lockdown measures, on the respondents’ subjective well-being by gender and ethnic background. We apply a difference-in-differences framework using data from the UK Household Longitudinal Study (UKHLS) combined with the UKHLS COVID-19 survey conducted in April 2020. Furthermore, using the Life Satisfaction Approach (LSA), we estimate the well-being costs of the coping strategies adopted that denote the amount required to revert individual’s well-being into the levels were before Covid-19 period. The results show that coping strategies with the earning losses have a significant detrimental impact on well-being and the related costs range between £250-3,500, which are significantly varied by gender and ethnic group. JEL Classification: C1, I14, I31

Valuing disaster risk reduction neighborhood interventions in informal settlements of Latin American and the Caribbean

This study assesses the dollar benefit of a neighborhood approach intervention on disaster risk reduction in small-sized, densely populated, and hazard-prone informal settlements across Latin American and Caribbean countries. We use a life satisfaction approach that assigns a dollar value to gains in wellbeing associated with the neighborhood approach intervention. Our primary data was a survey to a sample of 349 beneficiaries from small towns in Haiti, Guatemala, and Jamaica, and in major cities’ surrounded areas of Peru, Colombia, and Honduras. Out of 14 interventions, we found that community empowerment, physical works in public spaces and urban gardens/food approaches produced a gain of USD1,038 to USD1,241 to individual beneficiaries. Our study suggests a large benefit associated with the neighborhood approach intervention. It also shows that the life satisfaction approach is a promising method for the valuation of non-market and public goods, especially for countries where data on hazards and risks is not available to help monetize risk reductions.

Bark Beetle Epidemics, Life Satisfaction, and Economic Well-Being

Evidence of increased biotic disturbances in forests due to climate change is accumulating, necessitating the development of new approaches for understanding the impacts of natural disturbances on human well-being. The recent Mountain Pine Beetle (MPB) outbreak in the western United States, which was historically unprecedented in scale, provides an opportunity for testing the adequacy of the life satisfaction approach (LSA) to estimate the impact of large-scale forest mortality on subjective well-being. Prior research in this region used the hedonic method (HM) to estimate the economic impacts of the MPB outbreak, and results are used here to evaluate the reasonableness of economic estimates based upon the LSA. While economic estimates based upon the LSA model do not appear to be unreasonable, several limitations in using the LSA for nonmarket valuations are discussed. New avenues for research that link the LSA with stated preference methods are discussed that appear likely to address major concerns with standard LSA models as used in nonmarket valuation.