The Economic Shock of COVID-19 and the Perception of Social Cohesion

Abstract

This article is an analysis of the relationship between people’s perceptions of social cohesion on one hand and the economic impact of COVID-19 and the support provided by the government on the other. COVID-19 has dealt a significant impact on the economy, with one-third of those who were employed before February 2020 experiencing income losses after the onset of the pandemic. The impact was particularly severe on non-regular employees, daily-contract workers, “special-contract” employees, own-account workers, and low-income individuals. We examined survey data on the government’s COVID-19-related aid for self-employed people, employment-vulnerable individuals, and low-income groups. Our findings suggest that lower income levels and higher severity of COVID-19-related economic loss are associated with lower levels of satisfaction with the support received. The perception of social cohesion was lower among those who experienced economic losses due to COVID-19. Higher levels of satisfaction with the government aid received and higher acceptance of not receiving aid were associated with a stronger perception of social cohesion. To enhance social cohesion, it is essential to strengthen social policies aimed at safeguarding people’s employment and reducing poverty.