What Affects Perceived Health Risk Attitude During the Pandemic: Evidence From Migration and Dining Behavior in China

Abstract

The COVID-19 pandemic changed behaviors, at least temporarily, and possibly more permanently, with implications for both work and leisure activities. Some of those behavioral changes, such as dining in restaurants, have significant ripple effects on businesses and employment. We investigate the response to health risks in China with a study of decisions about eating out during the pandemic. We find that compared to a traditional measure of financial risk attitude, dining out behavior better captures individuals’ attitude toward the health risk posed by the pandemic and is more significant in predicting their expected total consumption during the recovery phase of the pandemic. In addition, we find that the effect of domestic in-migration is positive with respect to dining out, a signifier of confidence in the government response to the safety of internal flows. In contrast, international migration and port city of entry status are strongly negative with respect to dining out. The risk from the virus is perceived to be much stronger in such contexts. From a policy perspective establishing border controls was critical in re-creating a robust economy. Additional city and household level characteristics that affect dining-out behavior are also identified.

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