Localized social capital in action: How neighborhood relations buffered the negative impact of COVID-19 on subjective well-being and trust

The importance of neighbors is highlighted in times of crisis, such as the COVID-19 pandemic: they offer support by providing small services and a sense of community. Using panel data from Switzerland, this study investigates how and for whom relations with neighbors changed during the pandemic. In a second step, changes in sub-jective well-being and trust in other people are linked to changes in neighborly relations. The results show that the negative impact of the pandemic on people's subjective well-being and trust was much less pronounced for those who improved their relations with neighbors. Meanwhile, people with more resources prior to the pandemic were generally more likely to improve neighborly relations. Consequently, the most vulnerable groups in terms of health and socio-economic status saw their subjective well-being and trust negatively impacted through the challenging circumstances of the pandemic as well as indirectly through a relative deterioration of neighborly relations. Robustness analyses further show that the documented effects are attributable to changes induced by the pandemic.