This paper uses data from the Household Pulse Survey to examine whether and for how long the eligibility to receive state Earned Income Tax Credit (EITC) benefits reduced self-reported household food insufficiency among lower-income households with dependent children during the COVID-19 pandemic. The results of models estimated using difference-in-differences (DD) and difference-in-difference-in-differences (DDD) methods suggest that state EITC eligibility, on average, reduced food insufficiency by about 3 percentage points between March 2021 and early October 2021. However, the results of models estimated using an event study method show that the effect was not visible in all the post-March bimonthly periods. Overall, this paper finds some evidence to suggest that state EITC eligibility reduced food insufficiency over a short period.
This study examines the immediate and intermediate effects of the COVID-19 pandemic on the well-being of two high school graduation cohorts (2020 and 2021) and how changes in well-being affect students' educational plans and outcomes. Our unique panel data on 3697 students from 214 schools in 8 German federal states contain prospective survey information on three dimensions of well-being: mental health problems, self-rated health, and life satisfaction. Data is collected several months before (fall 2019), shortly before and soon after (spring 2020) as well as several months after (fall/winter 2020/21) the beginning of the COVID-19 pandemic. Applying difference-in-differences designs, random effect growth curve models, and linear regression models, we find that school closures had a positive immediate effect on students' well-being. Over the course of the pandemic, however, well-being strongly declined, mainly among the 2021 graduation cohort. We show that a strong decline in mental health is associated with changes in educational and career plans and transition outcomes. As adverse life experiences in adolescence are likely to accumulate over the life course, this study is the first to exhibit potential long-lasting negative effects of the COVID-19 pandemic on education and careers of young individuals.
We model push factors that determine the domestic migration decisions for couples, with emphasis on dual-earner different-sex couples. Unlike many prior studies that concentrate on labour market determinants of migration, we place the subjective well-being (SWB) reported by each partner at centre stage. We test whether migration determinants differ depending on whether the female is the main breadwinner in a dual-earner couple. We also test if determinants differ when either the female or the male is the sole earner within a couple. The evidence shows that a couple is more likely to migrate if she reports low SWB in the year prior to migration, with the strength of this effect varying depending on the earnings status of each partner prior to migration. Male SWB does not have the same impact on the migration choice although we find some evidence that pre-migration male wages impact the migration decision.
In 2020-21, parents' work-from-home days increased three-and-a-half-fold following the initial COVID-19 pandemic lockdowns compared to 2015-19. At the same time, many schools offered virtual classrooms and daycares closed, increasing the demand for household-provided childcare. Using weekday workday time diaries from American Time Use Survey and looking at parents in dual-earner couples, we examine parents' time allocated to paid work, chores, and childcare in the COVID-19 era by the couple's joint work location arrangements. We determine the work location of the respondent directly from their diary and predict the partner's work-from-home status. Parents working from home alone spent more time on childcare compared to their counterparts working on-site, though only mothers worked fewer paid hours. When both parents worked from home compared to on-site, mothers and fathers maintained their paid hours and spent more time on childcare, though having a partner also working from home reduced child supervision time. On the average day, parents working from home did equally more household chores, regardless of their partner's work-from-home status; however, on the average school day, only fathers working from home alone spent more time on household chores compared to their counterparts working on-site. We also find that mothers combined paid work and child supervision to a greater extent than did fathers.
We examine the response of rural Ugandan households to a large aggregate shock, the Covid-19 pandemic, during and one year after the first lockdown in March 2020. Using 6 rounds of phone surveys from 558 households in western Uganda, we find that household income recovery from the lockdown differs by whether households had a business pre-pandemic. After an initial sharp fall, the incomes of those without a business have recovered to pre-pandemic levels. However, the relatively better-off households with a business before the pandemic still have one-third lower income, due to sustained closure of businesses even after the end of the first lockdown restrictions. Additionally, business-owning households have 30% lower wealth one-year into the pandemic, driven by 44% lower assets, 45% drop in savings, and a 15 fold increase in net-borrowing, suggesting long-term damage. Our findings point to the need to support households who face dwindling finances to fall back on.
We study the added-worker effect in the Netherlands with large-scale administrative panel data for the period 1999-2015. Conditioning on samples with similar employment histories, we employ differences-in-differences to estimate the effect of a male partner's unemployment shock on the female partner's income. We find a modest added-worker effect of 2-5% of the male partner's income loss, as compared to the much larger compensating effect from social insurance schemes. The added-worker effect largely disappeared at the beginning of the Great Recession, but resurfaced a few years later. Over the years, profits from self-employment have become more important in dealing with unemployment shocks.