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The impact of COVID‐related economic shocks on household mental health in Pakistan

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  • Victoria Baranov
  • Pauline Grosjean
  • Fatima Jamal Khan
  • Sarah Walker

Abstract

We combine data collected just prior to the unfolding of COVID‐19 with follow‐up data from July 2020 to document the adverse economic effects of the pandemic and resulting impact on parental and child mental well‐being in peri‐urban Pakistan. 22% of the households in our sample are affected by job loss, with monthly income down 38% on average. Our difference‐in‐difference results show that job loss is associated with a 0.88 standard deviation (SD) increase in adult mental distress scores (K10), a 0.43 SD reduction in a Hope index of children's aspirations, agency and future pathways, and a 0.39 SD increase in children's depression symptoms. In addition, we observe higher levels of parental stress and anger reported by children, as well as an increase in reported prevalence of domestic violence. Overall, we document that the pandemic has disproportionately and negatively affected the economic and mental well‐being of the most vulnerable households in our sample.

Suggested Citation

  • Victoria Baranov & Pauline Grosjean & Fatima Jamal Khan & Sarah Walker, 2022. "The impact of COVID‐related economic shocks on household mental health in Pakistan," Health Economics, John Wiley & Sons, Ltd., vol. 31(10), pages 2208-2228, October.
    • Handle: RePEc:wly:hlthec:v:31:y:2022:i:10:p:2208-2228
    DOI: 10.1002/hec.4571
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    1. Guariso, Andrea & Björkman Nyqvist, Martina, 2023. "The impact of the COVID-19 pandemic on children’s learning and wellbeing: Evidence from India," Journal of Development Economics, Elsevier, vol. 164(C).
    2. Francesco Bogliacino & Cristiano Codagnone & Frans Folkvord & Francisco Lupiáñez-Villanueva, 2023. "The impact of labour market shocks on mental health: evidence from the Covid-19 first wave," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(3), pages 899-930, October.
    3. Favara, Marta & Freund, Richard & Perez-Alvarez, Marcello, 2023. "What If It Never Happened? Subjective Treatment Effects of a Negative Shock on Youth Labour Market Outcomes in Developing Countries," IZA Discussion Papers 16417, Institute of Labor Economics (IZA).
    4. Cho, Yoonyoung & Molina, Teresa, 2024. "The Importance of Existing Social Protection Programs for Mental Health in Pandemic Times," IZA Discussion Papers 16737, Institute of Labor Economics (IZA).

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