The impact of social welfare support on mental health in Vietnam

Abstract

This study examines the impact of government support on mental health in Vietnam using Vietnam’s Households Living Standard Surveys in 2018 and 2020 and a probit estimator. Characteristics of the households and the households’ heads are also examined. We find that government support tends to worsen mental health in Vietnam, implying the current Government support is insufficient to improve mental health in households, particularly during stressful times during the COVID-19 pandemic. Female-headed households appear to experience a more significant mental health deterioration compared to their counterparts, whereas households living in urban areas are mentally struggling compared to those living in rural areas. Our results also indicate that mental health deterioration exhibits an inverted U-shaped relationship with age, implying mental health appears to be a significant issue for young individuals in Vietnam. Household incomes and assets act as a buffer against mental health deterioration. These findings support the view that mental health deterioration appears to emerge from financial distress. Households suffer mental health deterioration if their financial circumstances are not improved and support from the government is insufficient.