Emergency-Aid for Self-employed in the Covid-19 Pandemic: A Flash in the Pan?

With the published Stata syntax files (do-files) and the data set (access after application), the results reported in the cited article can be replicated.

Self-employed persons faced severe income losses during the COVID-19 pandemic, prompting many governments to launch financial assistance programs, including Germany. In this study, we examine whether the German emergency aid program influenced the confidence of the self-employed to survive the crisis. For this purpose, we conducted an online survey of more than 20,000 self-employed individuals. Our analysis applies a treatment effects model with propensity score matching. As a result, we find that the program significantly increased the subjective survival probability among the self-employed. The effect depends on the level of education, the industry, as well as the speed of the payout. With the published Stata syntax files (do-files) and the data set (access after application), the results reported in the cited article can be replicated.

Self-employed persons faced severe income losses during the COVID-19 pandemic, prompting many governments to launch financial assistance programs, including Germany. In this study, we examine whether the German emergency aid program influenced the confidence of the self-employed to survive the crisis. For this purpose, we conducted an online survey of more than 20,000 self-employed individuals. Our analysis applies a treatment effects model with propensity score matching. As a result, we find that the program significantly increased the subjective survival probability among the self-employed. The effect depends on the level of education, the industry, as well as the speed of the payout.