Household Income, Crisis, and Changes in Mental Health: Based on the 2016-2022 China Family Panel Survey

• In Event: Inequality, Poverty, and Mobility Section Roundtables
  In Refereed Roundtable (60 minute): 5. Inequality and Health

Abstract

Although the relationship between mental health and COVID-19 pandemic received extensive attention during its early stages, limited empirical evidence has examined how its impact on mental health evolved over time. Using panel data from the China Family Panel Studies (CFPS) from 2016–2022, this study employs a continuous Difference-in-Differences (DID) approach to investigate the dynamic effects of the pandemic on mental health and their heterogeneity across social strata. The results show that the protective effect of income on mental health strengthened significantly after the outbreak of COVID-19. Specifically, individuals from higher-income households experienced a smaller deterioration in mental health during the pandemic, while people form lower-income households experienced a bigger deterioration. It indicates that economic resources played an increasingly important buffering role in times of crisis. These findings remain robust after controlling for a set of covariates and conducting parallel trend tests. Moreover, higher subjective social status, stronger perceived social connections, and homeownership are all associated with better mental health outcomes during the pandemic, suggesting that both material and social resources mitigated the adverse psychological consequences of the crisis.

Author

• Xiaoyan Liang, The University of Kansas