British Household Panel Survey Research Articles

Sector specificity of training

ABSTRACT Human capital acquired through employer-provided training is pervasive in labour markets and an important determinant of post-schooling wage growth. The literature has focused on understanding under what conditions this training will lead to higher wages. Here I offer another aspect for consideration: Does the proximity of the current job to past jobs affect the return to training? In particular, I look at whether the wage return to training acquired at a previous employer depends upon the relative ‘proximity’ of the worker’s past employer to their current one, where proximity is measured by whether the worker received the training in the same industry or occupation as the current job. I investigate this using data from the British Household Panel Survey, with both fixed effects and instrumental variable estimation. The results suggest that both current and previous employer training spells are important determinants of wages, and both need to be included in wage regressions. Evidence further suggests that the return to formal training is highest if the training was received in a previous job that was in the same industry and occupation as the current one.

Minimum wage and tolerance for high incomes

We suggest that stabilizing the baseline income can make low-wage workers more tolerant towards high income earners. We present evidence of this attitude in the UK by exploiting the introduction of the National Minimum Wage (NMW), which institutionally sets a baseline pay reducing the risk of income losses and providing a clear reference point for British workers at the lower end of the income distribution. Based on data from the British Household Panel Survey (BHPS), we show that workers who benefited from the NMW program became relatively more tolerant of high incomes and more likely to support and vote for the Conservative Party. As far as tolerance for high incomes is related to tolerance of inequality, our results may suggest that people advocate for equality also because they fear income losses below a given reference point.

The impact of religious involvement on trust, volunteering, and perceived cooperativeness: evidence from two British panels

Abstract Does religious involvement make people more trusting and prosocial? Considering conflicting theories and mixed prior evidence, we subject this question to a stringent test using large-scale, representative data from the British Household Panel Survey (1991–2009, N ≈ 26,000) and the UK Household Longitudinal Study (2009–2021, N ≈ 80,000). We employ cross-lagged panel models with individual fixed effects to account for time-invariant confounders and reverse causality—two issues that have haunted earlier research. We find that frequency of religious service attendance on average has a positive impact on generalized trust, volunteering, and perceived cooperativeness. Other indicators of religious involvement have weaker effects. We also find variation across religious traditions: the effects of religious attendance are mostly positive for Anglicans and other Protestants, but weaker and mostly statistically insignificant for Catholics, Hindus, and the unaffiliated, and even negative for Muslims when the outcome is perceived cooperativeness. Our findings are robust to alternative model set-ups and hold up after accounting for neighbourhood religious composition, respondent and interviewer ethnicity, and other potential moderators and confounders. Altogether, our study shows that religious involvement can foster prosocial behaviours and attitudes, although in our study this effect is largely restricted to religious service attendance and majority religions.

Parental nonemployment in childhood and children’s health later in life

While the effects of joblessness on the health of the non-employed are well-documented, its long-term spillover consequences on the health of their relatives, especially children, remain poorly understood. This research explores the long-term associations of parental nonemployment spells experienced during early, mid and late childhood on children’s mental and physical health. The analysis exploits data drawn from the British Household Panel Survey (BHPS) and the UK Household Longitudinal Study (UKHLS), linking detailed parental socioeconomic information with their children between the years 1993 and 2013. This paper employs a Correlated Random Effects (CRE) probit model that allows accounting for unobserved heterogeneity as well as a non-linear Generalized Estimating Equations (GEE) random effects estimator accounting in addition for the dependency structure of the data. Results indicate that experiencing parental nonemployment during early and late childhood has a negative association on the children’s likelihood of suffering from long-standing illnesses later in life, while experiencing parental nonemployment during middle childhood negatively affects the young adult’s mental health. Moreover, experiencing parental nonemployment during late childhood increases the probability of both reporting poor or fair self-assessed health and the likelihood of consuming prescribed medicines in early adulthood. However, there seems to be a considerable effect heterogeneity by family socioeconomic status, parents’ gender, and frequencies of parental nonemployment spells. Current adulthood circumstances, such as level of educational attainment, job situation and household demographics, are used to explore the potential mechanisms affecting results. These findings may help policymakers shape appropriate responses to mitigate the psychological and physical burden derived from parental nonemployment, especially among already disadvantaged households.

Can optimism solve the entrepreneurial earnings puzzle?*

AbstractIn this paper, we apply a general equilibrium occupational choice model to the study of the impact of optimism on the earnings of entrepreneurs and workers. We extend the work of Lucas (1978 Bell Journal of Economics 9, 508–523) by assuming a fraction of individuals are optimistic about their ability as entrepreneurs. The model shows that optimism leads to a misallocation of talent and inputs, which raises input prices and lowers output. The model is calibrated to match salient features of the UK economy and the British Household Panel Survey. The calibration shows that optimism can account for more than half of the size of the entrepreneurial earnings puzzle in the UK.

Does forming a nuclear family increase religiosity? Longitudinal evidence from the British Household Panel Survey

Abstract This study investigates how far the nuclear family—in terms of entering cohabitation and marriage and having a first and second child—affects religious salience, religious attendance, and activity in religious organizations. Previous research has shown that religious individuals are more likely to marry, and have higher fertility, than non-religious individuals. Less is known about how far the nuclear family also affects religiosity. This study presents longitudinal evidence on how religious factors change within the life-course of individuals after entering cohabitation or marriage and after having a first or second child in up to 14 waves of the British Household Panel Survey collected between 1991 and 2009. The comparison between longitudinal and cross-sectional results indicates how far religious factors affect family formation processes. All religious factors investigated (salience, attendance, activity) increased when people became parents, as well as when they married, but not when they started to cohabit. Most of these effects are long-lasting and they hold across age, gender and cohort groups.

Linked generations: child’s transition into unemployment and parents’ mental well-being

Abstract Unemployment has a negative effect on the mental well-being of individuals who experience it. The well-being of the partners and children of these individuals is also negatively affected by this transition. Little is known, however, on the effect of the transition into unemployment on the mental well-being of the parents of unemployed people. This article analyses the association between child’s transition into unemployment and parents’ minor psychiatric morbidity, using the General Health Questionnaire score as a proxy. The effects of the length of the unemployment spell and the specific pathway into unemployment are investigated. Eventually, the moderating role of the national level of unemployment is also explored. Data from the British Household Panel Survey and Understanding Society are used. The results of the analyses indicate that child’s transition into unemployment has a small, statistically significant, negative effect on mothers’ mental well-being, whereas the effect on fathers’ distress is negligible. The association between mother’s mental well-being and child’s unemployment does not vary by the duration of the unemployment spell, or by the specific path into unemployment (from employment, studentship, or other inactive status). Differently, the negative effect of child’s unemployment on mother’s well-being is larger at higher levels of unemployment at the country level.

Parenthood and the gender division of labour across the income distribution:: the relative importance of relative earnings.

This study employs a gendered relative resource approach to examine whether the importance of relative resources in shaping changes in the gender division of labor after first birth varies by couples' household income. A substantial body of scholarship has argued that the gender division of labor within different-sex couples is influenced by partners' relative resources. However, couples face class-based constraints that may alter the relevance of relative resources in shaping changes in gender divisions of labor following the transition to parenthood. This study compares couples' divisions of paid work and housework before and up to four years after first birth, using 28 waves of the British Household Panel Survey and the UK Household Longitudinal Study (N = 1,606 couples). I find that the effect of relative resources on changes in couple's paid work and housework behavior after first birth varies substantially by household income. Among higher-income couples, women's paid work and housework time changes less among those with high relative earnings and more among those with low relative earnings, while men's time allocation varies little after first birth. By contrast, among low-income couples, after first birth women's paid work time and share decreases most among female breadwinners while their male partners' paid work time increases substantially. These findings reflect the greater constraints that low-income couples face in making decisions about the division of household labor after first birth and highlight the need for greater attention to class interactions in the process of gender specialization in both research and work-family policy.

The importance of ecological quality of public green and blue spaces for subjective well-being

Background and aim There is now considerable evidence that the natural environment provides health and well-being benefits in urban environments. However, little is understood about the role of ecological quality in maximising well-being gains. Methods We examine the relationship between the accessibility of public natural spaces of high ecological quality and two measures of subjective well-being for adults, using the British Household Panel Survey (BHPS), a large, longitudinal panel dataset. We then compare this relationship with that found with all Public Open Spaces, regardless of their ecological quality. We use the designation of Sites of Importance for Nature Conservation (SINC) as an objective indication of high-quality green- or bluespace, and life satisfaction and mental distress as measures of well-being. We use the Areas of Deficiency dataset from Greenspace Information for Greater London CIC (GiGL) to identify residential areas with more than a 1 km walk from a SINC, based on actual walking routes from known access points. Results Postcode-level analysis using regression modelling reveals that living beyond a 1 km walk of a SINC decreases an individual’s life satisfaction by 0.117 points on a scale of 1 to 7. No relationship is found for mental distress. We also do not find any significant relationship between either well-being measure and all Public Open Spaces. Conclusions These findings suggest that the ecological quality of publicly accessible open spaces is important for the well-being of residents in Greater London and highlights the need for improving the provision of, and access to, high-quality green- and bluespaces in urban areas. Keywords Biodiversity; Greenspace; Bluespace; Well-being; BHPS

Investigating the impact on mental wellbeing of an increase in pensions: A longitudinal analysis by area-level deprivation in England, 1998–2002

In 1997 approximately two million people aged 60 years or over were living poverty in the UK. In 1999 the UK Government raised real pension incomes of low-income pensioners by around a third through the introduction of the Minimum Income Guarantee (MIG). This study explores the implications of this change for pensioners’ mental wellbeing with a focus on differences by area level deprivation in England. We explore mental wellbeing outcomes of 205 men (750 person-year observations) and 367 women (1,336 person-year observations) of state pension age from scores on the General Health Questionnaire from the British Household Panel Survey using a panel difference-in-difference estimation procedure. We compare the mental wellbeing of pensioners receiving MIG to that of low-income pensioners not claiming MIG, from 1998 to 2002. To investigate differences by area deprivation we use quintiles of the of the distributions of the 2000 and 2019 local-authority-level English Index of Multiple Deprivation. Models controlled for age, marital status and year. Between 1998 and 2002, 136 (38%) of low-income women and 57 (28%) of low-income men in the sample were claiming MIG at any one time. Income increased by 31% for men and 22% for women. There was no change in mental wellbeing for women but we found an improvement for men overall and for men living in the most deprived areas, in the latter case with a decrease of the GHQ-12 score of 2.43 points (95% CI: −5.49, 0.02). This estimate was similar across all measures of deprivation, and across both years of IMD. This study provides tentative evidence that the increase in pension income in England for low-income pensioners contributed to a reduction of inequalities in mental wellbeing for men. This needs to be considered in terms of future state pension policies.

Political polarization in the UK: measures and socioeconomic correlates

This paper evaluates the political polarization in the UK and analyzes its socioeconomic correlates based on detailed county-level panel data constructed from the British Household Panel Survey. Three different polarization measures, computed following different strands of the literature, are highly correlated and characterized by similar statistical properties, which implies they can be used interchangeably in the quantitative analysis. The empirical evaluation of the determinants of political polarization suggests that regional political polarization in the UK is positively associated with the variability of job status and negatively associated with an increase in the employment rate and an increase in the share of natives in the region. The findings of this paper fill the gaps in understanding the political polarization in the UK by clarifying its measurement, correlates, and trends.

The importance of ecological quality of public green and blue spaces for subjective well-being

There is now considerable evidence that the natural environment provides health and well-being benefits in urban environments. However, little is understood about the role of ecological quality in maximising well-being gains. We examine the relationship between the accessibility of public natural spaces of high ecological quality and two measures of subjective well-being for adults, using the British Household Panel Survey (BHPS), a large, longitudinal panel dataset. We then compare this relationship with that found with all Public Open Spaces, regardless of their ecological quality. We use the designation of Sites of Importance for Nature Conservation (SINC) as an objective indication of high-quality green- or bluespace, and life satisfaction and mental distress as measures of well-being. We use the Areas of Deficiency dataset from Greenspace Information for Greater London CIC (GiGL) to identify residential areas with more than a 1 km walk from a SINC, based on actual walking routes from known access points. Postcode-level analysis using regression modelling reveals that living beyond a 1 km walk of a SINC decreases an individual’s life satisfaction by 0.117 points on a scale of 1 to 7. No relationship is found for mental distress. We also do not find any significant relationship between either well-being measure and all Public Open Spaces. These findings suggest that the ecological quality of publicly accessible open spaces is important for the well-being of residents in Greater London and highlights the need for improving the provision of high-quality green- and bluespaces in urban areas.

Make up or break up? Partnership transitions among young adults in England and Wales

This study investigates partnership transitions of young adults born between 1974 and 1990 in England and Wales. These cohorts were affected by the expansion of higher education, increasing gender equality, and ideational changes, but faced increased economic precarity caused by the economic and housing crisis. Given these changes, it is likely that the partnership experiences of young adults including marriage, cohabitation, separation, and repartnering have also undergone considerable changes. We apply competing risks event history analysis to combined data from the British Household Panel Survey and the UK Household Longitudinal Study to determine how birth cohort, gender, socio-economic background, and educational attainment influence partnership changes. We study the transition into and out of first cohabitation and marriage and repartnering between age 16 and 27. Cohabitation has become a universal form of first union among young adults born in the late 1970s and 1980s regardless of their socio-economic background or educational level, but their first unions do not last long. While cohabiters are equally likely to marry or separate in the oldest cohort (1974-1979), cohabiting unions are very likely to end in separation among the two youngest cohorts (1980-1984 and 1985-1990). Consequently, repartnering has become common; those in the youngest cohort repartner rather quickly suggesting that an increasing number of individuals experience multiple partnerships. Highly educated young adults have higher rates of entry into first cohabitation than their lower educated counterparts across all cohorts. However, we do not find differences in cohabitation outcomes by socio-economic background and educational level indicating that the main changes have taken place across birth cohorts. The results also suggest that there is a convergence in partnership experiences among young men and women. The increased prevalence of sliding into and out of cohabitation could indicate significant changes in the meaning young people attach to first partnerships.

Job Satisfaction and Women's Timing of Return to Work after Childbirth in the UK

This article examines to what extent multiple facets of pre-childbirth job satisfaction affect women's labor market outcomes after first childbirth in the UK. Using the British Household Panel Survey (BHPS) we find that higher levels of overall job satisfaction increase the probability of returning to work sooner, and to the same job, during the sample period. Satisfaction with job security, work hours and the work content - but not with pay – are important determinants of mothers’ employment choices. We discuss the role of job satisfaction on women's ability to combine work and family responsibilities, and related aspects of job quality.

Changes in labour market histories and their relationship with paid work around state pension age: evidence from three British longitudinal studies

AbstractMany countries have implemented policies to extend working lives in response to population ageing, yet there remains little understanding of what drives paid work in later life, nor how this is changing over time. This paper utilises the 1988/89 Survey of Retirement and Retirement Plans, the 1999 British Household Panel Survey and the 2008 English Longitudinal Study of Ageing, to investigate drivers of paid work in the ten years surrounding state pension age (SPA) for women and men in, comparing cohorts born in the 1920s, 1930s and 1940s. Using optimal matching analysis with logistic and multinomial regression models, the study assesses the relative importance of lifecourse histories, socio-economic circumstances and contemporaneous factors, in determining paid work in mid- and later life. Participation in paid work in the five years preceding and beyond SPA increased markedly for men and women across cohorts, with women's lifecourses and engagement with paid work changing considerably in these periods. However, for women, a lifetime history of paid work remained a crucially important predictor of paid work in later life, and this relationship has strengthened over time. Experiencing divorce has also become an important driver of paid work around SPA for the youngest cohort. Having children later, and still having a mortgage, also independently predict labour force participation for women and men. Across all cohorts and for women and men, working at these older ages was a function of higher income and better health. These findings suggest that policies which enable people to maintain ties to paid work across the lifecourse may be more effective at encouraging later-life employment than those concerned only with postponing the retirement transition.

Long‐term income trajectories and the evolution of political attitudes

AbstractIncome and political attitudes are powerfully correlated in cross‐sectional data, yet research based on panel data finds at most a weak correlation. In this paper, we examine this puzzling pattern by exploring the long‐term evolution of attitudes over the life cycle. We evaluate the predictions of five different explanations on the relationship between attitudes and income experiences. These explanations focus on, respectively: socialization, anticipation, myopic self‐interest, learning and status maximization. We employ accelerated longitudinal design models using data on core political values that span up to sixteen years from the British Household Panel Survey. Our findings reconcile the mixed evidence in the literature: the correlation between income and political attitudes, strong in cross‐sectional studies but weak in short panel studies, emerges because attitudes crystallize – slowly but systematically – as income evolves over the life cycle. This pattern is most consistent with the learning explanation.

Mental health and satisfaction with partners: a longitudinal analysis in the UK

BackgroundCurrent UK health policy stresses treating health as an asset to underpin and promote a more inclusive and productive society. The quality of personal relationships is essential for overall quality of life. The social determinants of health (SDH) literature shows that poor mental health and well-being are linked to weaker personal and social connections for individuals, families, and society. The causal impact that mental health has on satisfaction with partners is less understood but requires investigation.MethodsThe causal relationship between mental health and satisfaction with partners is examined drawing on the United Kingdom’s British Household Panel Survey from 1991 to 2008. A total sample of 9,024 individuals in dyadic couples comprising 42,464 observations was analysed using fixed-effects and instrumental variable fixed-effects panel data estimation.ResultsLower mental health is associated with a lower satisfaction with partners. However, some causal evidence of lower mental health reducing satisfaction with partners is present for males.DiscussionFor females, relationship satisfaction is more likely to influence mental health. For males there is a potential ‘vicious circle’ between satisfaction with partners and mental health.ConclusionsInvestment in mental health provision can improve satisfaction with partners which in turn will further enhance health and well-being.

Minimum wage and tolerance for inequality

We suggest that people advocate for equality also because they fear income losses below a given reference point. Stabilizing their baseline income can make workers more tolerant of inequality. We present evidence of this attitude in the UK by exploiting the introduction of the National Minimum Wage (NMW), which institutionally set a baseline pay reducing the risk of income losses for British workers at the bottom of the income distribution. Based on data from the British Household Panel Survey, we show that workers that benefited from the NMW program became relatively more tolerant of inequality and more likely to vote for the Conservative party.

Longitudinal analysis of local government spending on adult social care and carers’ subjective well-being in England

ObjectivesReform of England’s social care system is repeatedly discussed in the context of increasing demand, rising costs and austere policies that have decreased service provision. This study investigates the association...

Pathways of participation in paid and unpaid work in mid to later life in the United Kingdom

AbstractPolicy responses to population ageing have focused on lengthening working lives, overlooking inequalities in older adults’ participation in unpaid activities. This paper examines participation in paid and unpaid activities between the ages of 55 and 70 to answer two questions: how do people navigate pathways of paid work, informal care, volunteering, civic participation and housework in mid to later life?; and how do these pathways relate to gender, socio-economic and health inequalities? Two-staged latent class analysis was used to identify activity pathways using data from the British Household Panel Survey (1996–2008). Multinomial logistic models assessed associations between latent pathways and socio-demographic and health characteristics. Three pathways were observed: full-time work to low activity (49%), part-time and in-home work (34%) and multiple activities (16%). Aside from retirement from full-time work, the pathways of participation in paid and unpaid activities were characterised by continuity; substitution between different forms of paid and unpaid work was not observed. Participation in multiple paid and unpaid activities was more common for respondents in better health and of higher socio-economic status. Since the promotion of paid work and volunteering in later life may mainly benefit individuals in advantaged circumstances, policies should avoid taking a blanket approach to encouraging participation in multiple activities, a key component of active ageing.