Stability of pro-sociality and trust amid the Covid-19: panel data from the Netherlands.

ABSTRACT

The Covid-19 has impacted most spheres of life and continues to influence the future course of socio-economic decisions. The effects of pandemic and virus contraction on the stability of social preferences are however relatively less know. This study examines the effects of the Covid-19 on pro-sociality and general trust by using the LISS panel data (time frame 2019-2020) from the Netherlands. The fixed effects panel regressions show that pro-social behavior and general trust do not differ pre-and-after the Covid-19. The article further analyzes the stability of pro-sociality and general trust among people who unfortunately contracted the Covid-19 virus and the uninfected ones (time frame 2019-2020) using difference-in-differences (DD) method to infer a causal effect of infections on preferences. The DD analysis also leads to insignificant causal effect of virus contractions on pro-sociality and trust. However, the sub-group analysis shows a positive causal impact of infections on trust for respondents above 60 years. Overall, both fixed effects regressions and DD analysis suggest that pro-sociality and to a large extent general trust in the Netherlands are stable despite the negative Covid-19 shock.