Face mask use during the COVID-19 pandemic: how risk perception, experience with COVID-19, and attitude towards government interact with country-wide policy stringency.

BACKGROUND: During the 2020 COVID-19 pandemic, governments imposed numerous regulations to protect public health, particularly the (mandatory) use of face masks. However, the appropriateness and effectiveness of face mask regulations have been widely discussed, as is apparent from the divergent measures taken across and within countries over time, including mandating, recommending, and discouraging their use. In this study, we analyse how country-level policy stringency and individual-level predictors associate with face mask use during the early stages of the global COVID-19 pandemic. METHOD: First, we study how (self and other-related) risk perception, (direct and indirect) experience with COVID-19, attitude towards government and policy stringency shape face mask use. Second, we study whether there is an interaction between policy stringency and the individual-level variables. We conduct multilevel analyses exploiting variation in face mask regulations across countries and using data from approximately 7000 students collected in the beginning of the pandemic (weeks 17 through 19, 2020). RESULTS: We show that policy stringency is strongly positively associated with face mask use. We find a positive association between self-related risk perception and mask use, but no relationship of mask use with experience with COVID-19 and attitudes towards government. However, in the interaction analyses, we find that government trust and perceived clarity of communication moderate the link between stringency and mask use, with positive government perceptions relating to higher use in countries with regulations and to lower use in countries without regulations. CONCLUSIONS: We highlight that those countries that aim for widespread use of face masks should set strict measures, stress self-related risks of COVID-19, and use clear communication.

The Relation Between Health and Earnings in Self-Employment.

Multiple studies have shown that, on average, the self-employed are healthier than wage workers. The link between the health of self-employed individuals and their financial performance in terms of earnings is, however, less understood. Based on human capital theory, we expect a positive link between health and earnings among the self-employed. For two reasons we expect the relationship between health and earnings to be stronger for the self-employed than for wage workers. First, the self-employed can more easily adapt their production activities such that they yield the highest returns to their human capital, including their health. Second, in the short term, the earnings of the self-employed are more dependent on the ability to work than the wages of wage workers. Our empirical analysis draws on data from the Household, Income and Labor Dynamics in Australia (HILDA) survey, a longitudinal dataset (2001-2017). Our outcome variable is an individual's total income derived from wage work and/or running a business. Health is measured using multi-item constructs for General health, Physical health, and Mental health from the Short Form Health Survey (SF-36). We distinguish between wage workers and self-employed individuals with and without employees. Fixed-effects regressions reveal a significant positive relationship between health and earnings in self-employment as well as in wage work. As expected, this relationship is significantly stronger in self-employment than in wage work (for General health and Physical health, but not for Mental health). The latter result holds particularly for self-employment without employees. We provide evidence that the higher returns can be partly explained by the fact that the earnings in self-employment are more dependent on the ability to work (as proxied by the number of working hours) than earnings in wage work. We also find a negative relationship between health and job termination. Again, this relationship is stronger for the self-employed (without employees) than for wage workers (for General health and Mental health, but not for Physical health).

Separation From the Life Partner and Exit From Self-Employment.

The survival of businesses in the market often hinges on contributions of the business owner's household members. Partners of the self-employed as well as their children may, for example, provide emotional support but also cheap and flexible labor. Although the household composition of self-employed individuals has been analyzed in many earlier studies, little is known about what happens to the self-employed individual and his or her business when one separates from a life partner. We argue that separation from a life partner has profound financial and social consequences for the business owner. Specifically, we propose that a decrease in household income and social functioning (which is the degree of interference with social activities due to mental and/or physical problems) after separation from the life partner may lead to an exit from self-employment. Our empirical analysis draws on data from the longitudinal HILDA (Household, Income and Labour Dynamics in Australia) survey, for the period 2002-2017. Based on information from 4,044 self-employed individuals aged 18-64 years (18,053 individual-year observations), we find that separating from the life partner in the past year significantly increases the probability of exit from self-employment in the next year. Furthermore, we find that the positive association between separation from the life partner and exit from self-employment can be explained for 29.7% by a reduction in social functioning and for 10.7% by a reduction in household income. We study five exit routes out of self-employment and find that separation from the life partner mainly increases the probabilities of becoming a wage worker and of re-entering self-employment after experiencing an exit. For exit to unemployment or to a position outside the labor force (voluntarily inactive/retirement or any other non-labor force position), we find insignificant relationships with separation from the life partner. Furthermore, for all exit routes except retirement, we find significant indirect effects implying that decreased household income and levels of social functioning are important mechanisms through which separation from the life partner is related to exit from self-employment.

Health and entrepreneurship in four Caribbean Basin countries.

The literature dealing with health and entrepreneurship has focused on developed countries. We use a sample of almost 5000 business owners and wage-workers from four Caribbean Basin countries to study this relationship. Analyses are performed using data from the Global Entrepreneurship Monitor along with the Visual Analogue Scale of the EQ-5D-5L instrument as an overall health rating. The results show that business owners are healthier than wage-workers, which is in line with the findings from studies in developed countries. Furthermore, better health is associated with a lower likelihood for fear of business failure to be a deterrent to new business formation, a greater likelihood of self-belief in having the skills to run a business, and an increased recognition of start-up business opportunities among wage-workers. These positive associations between health and entrepreneurial perceptions provide new evidence about why less healthy individuals refrain from entrepreneurship. Finally, we find that the healthiest business owners run the companies with the highest growth expectations.

The stature of the self-employed and its relation with earnings and satisfaction.

Taller individuals have on average a higher socio-economic status than shorter individuals. In countries where entrepreneurs have high social status, we may therefore expect that entrepreneurs are taller than wage workers. Using data from the German Socio-Economic Panel (2002-2012), we find that a 1cm increase in an individual's height raises the probability of being self-employed (the most common proxy for entrepreneurship) versus paid employed by 0.15 percentage points. Within the self-employed, the probability of being an employer is increased by 0.10 percentage points as a result of a 1cm increase in height, whereas this increase is 0.05 percentage points for an own-account worker. This result corroborates the higher social status of employers compared to own-account workers. We find a height premium in earnings for self-employed and paid-employed individuals: an additional 1cm in height is associated with a 0.39% increase in hourly earnings for paid employees and a 0.52% increase for self-employed individuals. Our analysis reveals that approximately one third of the height premium in earnings is explained by differences in educational attainment. We also establish the existence of a height premium in terms of work and life satisfaction, which is more pronounced for paid employees than for self-employed individuals.