The Heterogeneous Impact of Social Distancing on Household-Level Economic Performances: Evidence from a Large Survey in Vietnam

Abstract

This study utilizes a large dataset surveyed by Facebook and several academic institutions to examine the heterogeneous impact of social distancing on household-level economic performances, employing the generalized method of moments (GMM) estimator and controlling multi-channel fixed effects. In particular, in our case study, the Vietnamese government’s sudden social distancing policy, which is seen as a quasi-experiment, has created favourable conditions to evaluate the causality of this nexus. The results confirm the negative impact of social distancing on unemployment likelihood, especially for women and lower education levels groups. Notably, we also find that people with less desirable economic status (i.e., higher rate of unemployment and food insecurity) are more heavily hurt by social distancing practices. Therefore, the findings suggest the need for welfare programs for these disadvantaged groups post-pandemic. JEL codes: A13, C31, H75, J18