Analysis of depressive symptoms between formal and informal workers in South Africa during COVID-19 crisis

ABSTRACT

This study examines differences in depressive symptoms between informal and formal workers in South Africa during the COVID-19 lockdown period. The analysis focuses on the June to October 2020 period, which was characterised by the easing of lockdown regulations from level 3 to level 1. Using the NIDS-CRAM wave 2 and 3 survey data, the study estimates a standard logit and a fixed effects logit model to account for worker’s unobserved heterogeneity. Results show that the likelihood of experiencing depressive symptoms increased across all workers between June and October. However, there were no statistically significant differences between informal and formal workers’ mental health over this period. Additional results show that workers living in urban areas and households suffering from hunger had a higher risk of experiencing depressive symptoms. Based on these results, the study recommends for government strategies that curb the rise in depressive symptoms among all workers.

KEYWORDS:

• Depressive symptoms
• COVID-19 period
• formal/ informal workers
• South Africa

Acknowledgements

This manuscript is based on National Income Dynamics Study-Coronavirus Rapid Mobile Survey (NIDS-CRAM), 2021a, 2021b, Wave 3, Paper 3. Titled ‘Differences in depressive symptoms between formal and informal workers during the COVID-19 crisis: Evidence from Wave 2 and Wave 3 of NIDS-CRAM’. It has not yet been submitted to any other journal for consideration. We are grateful for the financial and technical support that has made this work possible. This includes funding from the NIDS-CRAM supporters: The Allan & Gill Gray Philanthropy Fund, the Federated Employer’s Mutual Education Fund, and the Michael & Susan Dell Foundation. We also acknowledge the core partners of the NIDS-CRAM project from different universities and government departments: The Department of Planning Monitoring and Evaluation (DPME) within the Presidency, The Research on Socioeconomic Policy (RESEP) group at Stellenbosch University, and Southern Africa Labour and Development Research Unit (SALDRU) at UCT. We are also appreciative of Vimal Ranchhod for suggestions to improve the manuscript.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 However, from 29 December 2021 to 15 February 2022 the government enforced amended level 3 regulations to curb the spread of a second wave of the pandemic. Thereafter, the regulations reverted to adjusted level 1 which was relaxed on 5 May 2022 when the government lifted the state of disaster.

2 That is agriculture, hunting forestry and fishing; wholesale and retail trade, spaza shops and informal traders; informal recyclers; and private households (COGTA, 2020b).

3 The illustration is based on the following simplified model: $w_{it}=\gamma I{F}_{it}+u_{it.}$

Additional information

Funding

Funding for the broader NIDS-CRAM project was provided by the Allan & Gill Gray Philanthropy Fund, the Federated Employer’s Mutual Education Fund, and the Michael & Susan Dell Foundation.