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

Abstract

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.