The COVID-19 pandemic has caused hundreds of thousands of people to suffer severe illness or die and has had severe effects on individuals’ financial well-being as well. Unfortunately, it is very likely that the pandemic has had a disproportionate effect, particularly on vulnerable and underserved groups, including immigrants in the USA. This study aims to examine the association between perceived health risk and perceived financial risk attributable to COVID-19, and focuses on their heterogeneous effects depending upon immigrant status.
The study used the Understanding America Study (UAS) COVID-19 National Survey data collected from April 2020 to July 2021. Sets of ordinary least squares (OLS) regression and fixed effects regression analyses were conducted on the perceived risk COVID-19 poses on households’ finances. The main focal variables of interest were immigrant status and perceived risk of COVID-19 infection and death.
The results showed that the correlation between health risk and perceived financial risk was much higher among first- and second-generation immigrants. Surprisingly, various types of government aid did not have a consistent and significant effect on the recipients’ perception of the risk that COVID-19 poses to their household finances.
This study is one of the few attempts to empirically examine the association between perceived health risk and financial risk during the COVID-19 pandemic by focusing on the heterogeneity by immigrant status. The authors used an appropriate methodology that considered the panel structure of the UAS COVID-19 National Survey’s data. The study provides important implications for researchers and policymakers related to immigrants’ financial well-being.
