We highlight the problem of loneliness, and argue that it is not only a public health issue but also an economic problem. We provide a brief review of findings from the key literature on the associations between loneliness, mental and physical health, and healthcare costs; and then present some evidence on its trends, the extent of socioeconomic inequalities and its links with health and healthcare usage, in Australia. We hope to encourage further economics research on loneliness, and related issues of social isolation and poor social support, to aid the design of policies and interventions to reduce loneliness.

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Enhancing population resilience to adverse events is now a policy priority. Accordingly, there have been calls for more evidence on the determinants of resilience. We answer this call by identifying financial and non‐financial resources associated with psychological resilience during the COVID‐19 pandemic. Using longitudinal survey data, psychological resilience is measured by comparing distress reported pre‐COVID‐19 with distress reported during the outbreak and initial lockdown in April 2020. Methodologically, we compare differences in resilience and resources between people with identical gender, ethnicity, health, parenthood status, education, employment status, and region of residence (all measured pre‐2020). We also provide estimates from within‐household comparisons. Surprisingly, income, savings, and debt levels did not affect the likelihood of psychologically resilient outcomes. Cognitive ability, religiosity, and neighborhood social capital also had no protective effect. In contrast, we find robust evidence that non‐cognitive skills, measured by self‐efficacy, strongly protected against psychological distress. Self‐efficacy also dampened the increase in distress caused by large earnings shocks. These findings support investments in non‐cognitive skills that modify the damage‐function from adverse events.

Objectives We provide new evidence on the profiles of social isolation, social support, and loneliness before and after spousal death for older widows. We also examine the moderating effects of gender and financial resources on changes in social health before and after widowhood. Methods We use 19 waves of data from the Household, Income and Labour Dynamics in Australia Survey, including 749 widowed individuals and a comparison group of around 8,000 married individuals. We apply coarsened exact matching weights and control for age and time trends. Local polynomial smoothed plots show the profiles of social health from 3 years pre- to 3 years postspousal death. All analyses were stratified by gender. Results Spousal death was strongly associated with increased loneliness for women and men, but also an increase in interactions with friends and family not living with the bereaved. For men, financial resources (both income and asset wealth) provided some protection against loneliness. Spousal death was not associated with changes in social support or participation in community activities. Discussion We demonstrate that loneliness is a greater challenge of widowhood than social isolation or a lack of social support. Our findings suggest that interventions focusing only on increasing social interactions are unlikely to alleviate loneliness following spousal death. Moreover, policies that reduce the cost of formal social participation may have limited effectiveness in tackling loneliness, particularly for women. Alternative strategies, such as helping the bereaved form a new sense of identity and screening for loneliness around widowhood by health care workers, could be beneficial.