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It is widely accepted that individual happiness is not, or not solely, related to material possessions, at least once basic needs are fulfilled. It has been demonstrated that interpersonal relationships and social capital matter too, and people whose values are more centred on material possessions have a greater probability of being less happy. Is this still true during the COVID-19 pandemic, when interpersonal relations, health and economic security are threatened and feelings of insecurity emerge? This is the issue that we address in this paper. We exploited the unique natural situation of the pandemic and lockdown in Italy to investigate the relationship between happiness and relational and material goods. Data collected by questionnaire during the lockdown suggests that the main direct effect of the pandemic on the happiness of respondents was related to the effect of the pandemic and lockdown on interpersonal relationships. Those who declared that COVID and lockdown had jeopardized their interpersonal relationships were significantly less likely to report higher levels of happiness, especially when controlling for other personal and contextual covariates. An important gender, religious and town size effect also emerged. Moreover, relational goods and good health were considered to be the most important determinants of happiness, though people were not so worried about their own health. [ABSTRACT FROM AUTHOR]

Italy was among the first countries to introduce drastic measures to reduce individual mobility in order to slow the diffusion of COVID-19. The first measures imposed by the central authorities on March 8, 2020, were unanticipated and highly localized, focusing on 26 provinces. Additional nationwide measures were imposed after one day, and were removed only after June 3. Looking at these watershed moments of the pandemic, this paper explores the impact of the adoption of localized restrictions on changes in individual mobility in Italy using a spatial discontinuity approach. Results show that these measures lowered individual mobility by 7 percentage points on top of the reduction in mobility recorded in the adjacent untreated areas. The study also fills a gap in the literature in that it looks at the changes in mobility after the nationwide restrictions were lifted and shows how the recovery in mobility patterns is related to various characteristics of local labour markets. Areas with a higher proportion of professions exposed to diseases, more suitable for flexible work arrangements, and with a higher share of fixed-term contracts before the pandemic are characterised by a smaller increase in mobility after re-opening. [ABSTRACT FROM AUTHOR]