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Protecting mental health during periods of financial stress: Evidence from the Australian Coronavirus Supplement income support payment

Author

Listed:
  • Ferdi Botha

    (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne)

  • Peter Butterworth

    (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne)

  • Roger Wilkins

    (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne)

Abstract

This paper investigates whether the Australian government’s Coronavirus Supplement, a temporary income support payment for unemployed jobseekers during the height of the COVID-19 pandemic, protected mental health by lowering financial stress. We use unique nationally representative data on 3,843 Australian adults over the period 6 April 2020 to 10 May 2021. We find that the Coronavirus Supplement payment significantly reduced reported financial stress, and lower financial stress was associated with lower mental distress. The Coronavirus Supplement was successful in protecting community mental health, indirectly through its effect of reducing financial stress. The findings provide support for temporary income support packages to protect mental health during periods of increased financial stress.

Suggested Citation

  • Ferdi Botha & Peter Butterworth & Roger Wilkins, 2021. "Protecting mental health during periods of financial stress: Evidence from the Australian Coronavirus Supplement income support payment," Melbourne Institute Working Paper Series wp2021n31, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2021n31
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    Cited by:

    1. is not listed on IDEAS
    2. Mari, Gabriele, 2024. "Pandemic Income Support Programs and Adolescent Mental Health in the UK, Ireland and Australia," SocArXiv pzr4k, Center for Open Science.
    3. Jeong, Soyun & Fox, Ashley M., 2023. "Enhanced unemployment benefits, mental health, and substance use among low-income households during the COVID-19 pandemic," Social Science & Medicine, Elsevier, vol. 328(C).
    4. Mari, Gabriele, 2025. "Pandemic income support programs and adolescent mental health in the UK, Ireland, and Australia," Social Science & Medicine, Elsevier, vol. 365(C).
    5. Jeff Borland, 2025. "Decline to boom to slowdown: Australia’s labour market in the COVID- 19 era," Melbourne Institute Working Paper Series wp2025n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

    More about this item

    Keywords

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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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