Are Spaniards Happier When the Bars Are Open? Using Life Satisfaction to Evaluate COVID-19 Non-Pharmaceutical Interventions (NPIs)

Abstract

The COVID-19 pandemic has challenged governments worldwide with the design of appropriate policies that maximize health outcomes while minimizing economic and mental health consequences. This paper explores sources of individuals’ life satisfaction during the COVID-19 pandemic, paying special attention to the effects of non-pharmaceutical interventions (NPIs). We studied the specific case of Spanish regions and focused on bar and restaurant closures using data from a continuous voluntary web survey that we merged with information about region-specific policies that identified when and where bars and restaurants were closed. We estimated an endogenous binary-treatment-regression model and found that closing bars and restaurants had a significant negative impact on happiness. The results were statistically significant after controlling for the pandemic context, health, income, work, and other personal characteristics and circumstances. We interpreted the results in terms of the positive effect of socialization, individuals’ feelings of freedom, and the comparative nature of life satisfaction.