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A Tale of Three Countries: What is the Relationship Between COVID‐19, Lockdown and Happiness?
Author(s) -
Greyling Talita,
Rossouw Stephanie,
Adhikari Tamanna
Publication year - 2021
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/saje.12284
Subject(s) - happiness , covid-19 , duration (music) , estimation , demographic economics , population , pandemic , development economics , geography , demography , economics , psychology , social psychology , sociology , medicine , virology , outbreak , art , literature , disease , management , pathology , infectious disease (medical specialty)
The COVID‐19 pandemic led many governments to implement lockdown regulations to curb the spread of the virus. Though lockdowns do minimise the physical damage caused by the virus, there may also be substantial damage to population well‐being. Using a pooled data set, we analyse the relationship between a mandatory lockdown and happiness in three diverse countries: South Africa, New Zealand and Australia. These countries differ amongst others in terms of lockdown regulations and duration. The primary aim is to determine, whether a lockdown is negatively associated with happiness, notwithstanding the characteristics of a country or the strictness of the lockdown regulations. Second, we compare the effect size of the lockdown on happiness between these countries. We use Difference‐in‐Difference estimations to determine the association between lockdown and happiness and a Least Squares Dummy Variable estimation to study the heterogeneity in the effect size of the lockdown by country. Our results show that a lockdown is associated with a decline in happiness, regardless of the characteristics of the country or the type and duration of its lockdown regulations. Furthermore, the effect size differs between countries in the sense that the more stringent the stay‐at‐home regulations are, the greater it seems to be.