The effects of the expanded pandemic unemployment assistance on non‐standard workers' financial and mental wellbeing

Abstract During COVID‐19, for the first time in U.S. history, Unemployment Insurance (UI) benefits were extended to non‐standard workers who are not typically eligible for that. Given the exclusion from the social security system, this offers an important opportunity to investigate such benefits on their economic and emotional security. To estimate it, I analyze staggered difference‐in‐differences and triple difference models using the Household Pulse Survey. I found that the early termination of the expanded pandemic UI program led to increases in financial and mental difficulties among residents, especially non‐standard workers with more difficulty in paying expenses and depression. These findings suggest that expanded eligibility for social insurance programs can help alleviate economic insecurity and associated mental health problems for categories of workers who have been excluded from the existing system, particularly in the face of unexpected crises and labor market disruptions.