Effects of lockdowns in shaping socioeconomic behaviors

What is it about?

We investigate how severely curtailed physical interaction shapes behaviors considered vital for socioeconomic development. By studying the behaviors of college students with different lockdown experiences but otherwise similar characteristics, we find that those exposed to lockdown were more likely to trust others and be honest; however, their creativity was significantly lower. Exposure to lockdown did not significantly affect students’ trustworthiness, risk preferences, or competitiveness. Additional evidence from surveys reveals that communicating with friends can alleviate the negative impact of lockdown on creativity.

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Photo by Kelly Sikkema on Unsplash

Photo by Kelly Sikkema on Unsplash

Why is it important?

Our findings suggest that lockdowns can affect socioeconomic development. Trust and honesty are fundamental to a well-functioning market economy, while creativity is essential for innovation and technological advancements. We believe our findings are applicable in similar situations where physical interaction is limited. Certain occupations, such as maritime trade, mining, and the military, as well as natural disasters, such as floods and bushfires, can also result in social isolation. Mitigating the negative impact of limited physical interaction on creativity can improve socioeconomic development in these contexts.