Fixed Effects Approach Research Articles

Volunteer Retirement and Well-Being in Older Adults: A Longitudinal Study

The extant literature on volunteering has focused primarily on the many benefits of volunteering for older adults. However, the question rarely investigated is whether these benefits dissipate when older adults retire from their volunteering. Given the U.S. policy context wherein volunteering is promoted as a solution to the problems of aging, this research investigates the association between the loss of one’s volunteering role through retirement and well-being. Utilizing three waves of the U.S.-based National Social Life, Health, and Aging Project (NSHAP) (2005–2016) and a fixed-effects modeling approach, we find that the well-being of older adults, measured as self-reported health, happiness, and depressive risk, is negatively associated with volunteer retirement. Our study contributes to the literature on well-being and volunteering for older adults and is the first study focusing on this critical transition point in the life of older volunteers. In addition, policymakers and organizations must broaden their focus to include not only the recruitment and retention of older adult volunteers but also the transition out of volunteering that many of them will eventually face.

Educational gender gap in sub-Saharan Africa: Does the estimation method matter? A comparison using a sample of opposite sex twins

A robust assessment of the gender educational gap addressing all channels behind gender discrimination is necessary. Using data for over 30 sub-Saharan Africa (SSA) countries and household and twin fixed-effects approaches, I estimate this inequality across the lifecourse, controlling for variables that are the same within households or twins, yielding a better understanding of the association of gender with education outcomes. Estimates show that gender inequality is still a significant barrier in SSA, but its extent is somewhat over-estimated by monitoring platforms of SGD4. The analysis indicates that more emphasis should be placed on investigating unobserved factors behind gender discrimination.

Analysis of Factors Affecting the Human Development Index in Increasing Indonesian Economic Growth in North Sumatra Province

Background: Improvement can be interpreted as an effort or procedure that can trigger change. This repair procedure covers all aspects of people's lives, including financial, political, social and cultural aspects. Objective: with the aim of achieving financial growth Methods: The methods that can be used are the Pooled Least Square Model (Common Effect), the Fixed Effect Approach Model and the Random Effect Approach Model. Results: The results of data processing show that the t count of the poverty level variable is t count < t table. The significance of the t test is 0.0021 with a significant standard of 0.05, so the significant value of the poverty level is less than 0.05, so Ho is rejected and Ha is accepted. Conslusion: Economic growth has a very positive influence on the HDI in North Sumatra Province, which can be concluded that if increasing economic growth will also increase the human development index in North Sumatra Province because the two are interconnected.

Medicaid can and should play an active role in advancing health equity.

Medicaid can and should play an active role in advancing health equity.

Determinan Pendapatan Asli Daerah Kabupaten atau Kota di Jawa Tengah Tahun 2017-2020

Local revenue is one of the main sources in carrying out development in each region. Regions cannot rely on funding sources from the center due to the limited funds they have. This study aims to determine the effect of the number of workers, consumer price index, investment, and the regional minimum wage on the original income of the Regency or City in Central Java in 2017-2020 by using panel data regression. The results with the Fixed Effects approach show that the number of workers has a negative effect on regional original income and the regional minimum wage has a positive effect on regional original income. Meanwhile, investment and the consumer price index were found to have no effect on the original income of districts or cities in Central Java Province in 2016-2020. The government is expected to improve the economy so that it can attract investors to invest their capital. In addition, the control of commodity prices for goods and services needs to be improved so that the public can still reach the rising prices.

Synthesizing the impacts of information and communication technology advancement and educational developments on environmental sustainability: A comparative analyses of three economic blocs—BRICS, MINT, and G7 economies

AbstractIn the wake of the growing threats to humanity from climate change, we analyzed the information and communications technology (ICT)/education—environmental nexus from three distinct blocs including BRICS, MINT, and the G7 economies between 1990 and 2020. Two models were examined to reach the study's objectives. The first model evaluates whether education and ICT are essential for environmental sustainability via potential reduction in carbon emission. On the other hand, the second model fills an existing gap in extant studies by examining the prospect of education and ICT in influencing citizens on the importance of transition to renewable energy usage. Driscoll and Kraay estimator was employed as a panacea tool for cross‐sectional dependence and slope homogeneity while the fixed effect approach provides sufficient robustness checks on the findings. While some outcomes vary per bloc, others are relatively similar across the three blocs. Education level in school enrollment perspectives shows a negative significant pollution reduction effect across the three blocs, while only the G7 bloc performed better from human capital perspectives. The combined sample bloc shows that ICT also significantly reduces carbon emission, however, an individual bloc analysis refutes this stance for the MINT bloc. Additionally, while renewable energy cushions emissions in all the blocs, rapid urbanization, shows a positive CO2 emission impact except in the G7 bloc. Last, ICT and education significantly boost renewable energy usage only in the G7. Hence, governments and stakeholders in the blocs should gravitate toward greater investments in quality education and greener ICT infrastructures for a sustainable environment.

Predicting International Student Enrollment by Institutional Aid: A Random and Fixed Effects Approach

Since the fall semester of 2016, first-time international student enrollment (ISEft) has declined at U.S. colleges and universities. This trend disrupts a steady upwards trajectory of ISEft rates. Previous research has demonstrated that various political, social, and macroeconomic factors influence the number of international students studying in the U.S. Exploiting data from the Common Data Set (CDS), I focus on the role financial aid plays as an enrollment predictor for international undergraduate students. A fixed effects model reveals that financial aid is strongly and significantly predictive of ISEft, yielding a 1.8% enrollment increase per 10% aid increase, all else equal. Interestingly, financial aid is only predictive of ISEft if it is awarded in substantial amounts. Extending the work of Bicak and Taylor (2020), I also analyze how the effectiveness of financial aid awards varies within different institutional settings. Random effects regressions reveal that rural, low research, and private universities experience considerable marginal ISEft boosts when awarding aid to international students. The findings of this work are primarily directed at institutional leaders who seek to revitalize their institution’s ISEft policy. Moreover, these insights may inform local policymakers who seek to incent ISEft.

Children's strains, parents' pains? How adult children's union dissolution influences older parents' health

Objective: This study aimed at investigating gender differences in the longitudinal associations between adult children’s union dissolution and older parents’ health. Background: The family life course perspective and theories of social stress suggest that adult children's union dissolution may affect a parent's health. However, the extent to which parental health changes before and after a child’s separation is still barely investigated. Method: Data from four waves of the Dutch component of the Survey of Health, Ageing and Retirement in Europe (SHARE) were linked to panel register data from the System of Social-statistical Datasets (SSD). We applied a fixed-effects approach to 4,985 parent-child dyads nested in 2,511 parents to assess the influence of children’s union dissolution on three different measures of parental health (depression, grip strength, and frailty). Results: Results indicated that parents' health conditions worsen as one of their children gets separated. In addition, we found anticipation effects of children's union dissolution on parental health. Among parents, no clear gender differences emerged. The separation of a son exerts a stronger burden on parental health than that of a daughter. Conclusion: This research contributes new findings, expanding the small existing body of literature to both physical and mental health outcomes. Furthermore, it highlights the importance of focusing on both the period before and after a child's separation. Gender-related differences help to understand the pathways to poor health at older ages.

Tax Revenue and Income Inequality

This study examines the relationship between tax revenues and income inequality at the provincial level in Indonesia from 2011 to 2019. Applying a fixed-effect approach, this study finds that total tax revenue has no significant effect on income inequality. This result implies that Indonesia's current tax system and structure, both national and sub-national, have been unable to contribute to reducing provincial income inequality. Likewise, by the type of taxes, both income tax and value-added tax revenue have a relatively insignificant effect. However, the ratio of local taxes to gross regional domestic product (GRDP) has a considerable positive effect on income inequality, indicating that the majority of consumption taxes in the local tax component are regressive. Accordingly, at the sub-national level, expenditure programs may play role in reducing provincial inequality instead of the tax system.

The Retirement-Health Puzzle: A Sigh of Relief at Retirement?

While the health effects of retirement have been well studied, existing findings remain inconclusive, and the mechanisms underlying the linkage between retirement and health are unclear. Thus, this study aimed to evaluate the effects of retirement on health and its potential mediators. Using a national household survey conducted annually from 2004 to 2019 in Japan (the Japan Household Panel Survey), we evaluated the effects of retirement among Japanese men aged 50 or older on their health, in addition to other outcomes that could be attributed to health changes associated with retirement (i.e., health behaviors, psychological well-being, time use for unpaid activities, and leisure activities). As outcomes are not measured every year, we analyzed 5,794-10,682 person-year observations for 975-1,469 unique individuals. To address the potential endogeneity of retirement, we adopted an instrumental variable fixed-effects approach based on policy changes in eligibility ages for employee pensions. We found that retirement improved psychological well-being, exercise habits, and time spent on unpaid work. The psychological benefits of retirement were no longer observed for longer durations after retirement, whereas healthy habits and unpaid activities continued. Moreover, health-related improvements after retirement occurred mostly in the higher-income group. Enhancement in personal quality of life owing to increased leisure time and stress reduction from work in addition to lifestyle changes may be key to understanding the health benefits of retirement. Considering the mechanisms behind retirement-health relationships and potential heterogeneous effects is essential for healthy postretirement lives when increasing the retirement age.

Birth order and health events attributable to alcohol and narcotics in midlife: A 25-year follow-up of a national Swedish birth cohort and their siblings

Higher birth order is associated with increased risks of adverse health outcomes attributable to alcohol or narcotics in adolescence, but it remains unclear whether these observed birth order effects are also present in midlife. Drawing on a national Swedish cohort born in 1953 and their siblings, we estimate associations between birth order and alcohol- or narcotics-attributable hospitalization or death with a 25-year follow-up to assess whether birth order differences are observed during this life course period. Health events attributable to alcohol or narcotics use were identified using the Swedish National Patient and Cause of Death registers, respectively. We apply Cox proportional hazards models to estimate average birth order differences in hazards for alcohol- or narcotics-attributable hospitalization or death between ages 30 and 55. We estimate birth order differences between families, and use two fixed-effects approaches to estimate birth order differences within families and within families of the same type. Bivariate results indicate increased hazards for both outcomes with higher birth order; however, these results are no longer observed after adjustment for familial background characteristics in all models. Our results thereby show limited evidence for birth order differences in midlife. This study highlights that shared factors within the family of origin may be stronger predictors of adverse health outcomes attributable to substance use among siblings during this life course period. Future research should disentangle the contributions of the social environment within the family of origin for adverse health outcomes attributable to alcohol or narcotics among siblings.

Adolescent sleep quality and quantity and educational attainment: a test of multiple mechanisms using sibling difference models.

The objective of this study is to determine whether and how sleep quality and quantity during adolescence are related to educational attainment in adulthood. This study also investigates whether this relationship varies by gender. Using data from the National Longitudinal Study of Adolescent to Adult Health, the present study employed a sibling fixed effect approach that takes into account unobserved family background factors such as genetics and social environments. Gender-stratified analyses were conducted to consider the potential gendered relationship between adolescent sleep and educational attainment. Controlling for unobserved family-level heterogeneity attenuated the associations between adolescent sleep characteristics and educational attainment, albeit in different ways for boys and girls. Gender-stratified models suggest that, for boys, only the association between short sleep duration and educational attainment was robust to adjustment for sibling fixed effects. In contrast, for girls, among three sleep quality measures, only trouble falling or staying asleep remained significantly associated with educational attainment even after controlling for unobserved family heterogeneity. Sibling fixed effects estimates suggest that short sleep duration (6 or fewer hours per night) was negatively associated with years of schooling only among boys (b = -0.443), whereas trouble falling or staying asleep was associated with a reduction in years of schooling only among girls (b = -0.556). The mechanisms underlying the observed associations also differed by gender. For boys, the association between short sleep duration and educational attainment was partially explained by a combination of educational, social, and psychological factors. Only intermediate educational factors explained part of the association between trouble falling or staying asleep and educational attachment among girls. The study's finding that the relationship between adolescent sleep characteristics and educational attainment and the mechanisms underlying this relationship differ by gender calls attention to the need for gender-specific interventions.

Determinan Pembangunan Manusia Kabupaten/Kota di Provinsi Jawa Tengah

The background of this research is the inequality of human development in regencies/cities in 2008 to 2012. Thus, the purpose of this research is to analyze the factors influencing of human development as well as the role of local governments and private sectors towards human development in regencies/cities. The method of analysis used is Data Panel Regression with Fixed Effect approach using Eviews 6.0 application. The result of this research show that human development influenced by poverty, Gini index, private investment, open unemployment, economic growth, expenditure of education function and expenditure of health function. Private investment, expenditure of education function and expenditure of health function have a positive significant. Poverty, Gini index, open unemployment and economic growth have a negative significant. The role of local government through expenditure of education function is very large. The role of local government through expenditure of health function has not been too immense. The private sector's role through private investment is quite large.

Trading Activity in Public Real Estate Markets

Trading activity is an important characteristic of financial markets, since it is related to price discovery, volatility, and market liquidity. It is therefore of crucial importance to understand what drives trading activity in real estate markets. Here, we use a panel dataset consisting of 142 US REIT stocks observed over almost 20 years and a fixed-effects regression approach to link variation in trading activity to proxies for different trading motives (theory-motivated). The paper shows that the drivers of trading activity in real estate markets are distinct from those in the broader equity market. Proxies for portfolio rebalancing needs and liquidity trading are shown to be important trading motives in REIT markets. However, unlike in the broader equity market, difference of opinions and information-based trading motives seem to play a minor role for REIT trading activity.

Political alignment and project funding

We analyze the relationship between the party affiliation of politicians at different levels of government and the spatial distribution of funding for research, development and innovation projects. In particular, we are investigating whether more federal grants are being granted in Germany for projects in federal states whose government is led by the same political party as the responsible ministry at federal level. Our dataset contains detailed information on publicly funded projects in Germany in the period 2010–2019. Using a fixed-effects estimation approach, we find a link between grant allocation and party affiliation of funding for research, development and innovation projects, in particular smaller ones. For these projects, political alignment is associated with an average increase in public funding by almost 10,000 euro. Our results suggest that public funds for research, development and innovation projects could be used more efficiently than they are.

Financial Inclusion and Bank Profitability: Evidence from Indonesia

Research aims: This study attempts to investigate the effect of financial inclusion on bank profitability in the Indonesian context.Design/Methodology/Approach: The sample of this study consisted of 93 commercial banks in Indonesia between 2015 and 2020. The researchers used panel data regression with a fixed effects approach to investigate the nexus between financial inclusion and bank profitability.Research findings: It was found that financial inclusion positively affected bank profitability in three different dimensions of financial inclusion: access, availability, and usage.Theoretical contribution/Originality: Most of the previous papers have investigated the impact of financial inclusion on the national levels, such as how financial inclusion affects economic growth. Meanwhile, this paper examines the impact of financial inclusion on bank-level profitability, an issue relatively unexplored in the literature, particularly in Indonesia. The use of three dimensions of financial inclusion in the context of a developing economy is also the novelty of this article.Practitioner/Policy implication: The result of this study can also assist policymakers, such as the central bank of Indonesia, in designing better strategies and regulations to achieve higher financial inclusion and boost the economy's development.Research limitation/Implication: The result of this paper might only be applied to Indonesia’s specific setting or developing countries.

The link between financial education and financial literacy: A cross-national analysis

Financial literacy is a competence that extends to many aspects of everyday life. The Great Recession has recently highlighted its relevance and the importance of financial literacy training in the school curricula. The authors use PISA 2015 data to investigate the link between financial education and young people’s financial literacy across 15 countries using a student fixed-effects approach. Their results illustrate how financial education is still in its infancy within many countries and does not seem to improve young people’s ability to apply financial skills in real-world situations.

Consolidation in Prescription Drug Markets: Impact on Pricing and Access

We examine the impact of M&A activity between drug manufacturers on drug prices and patient access. We start by collecting detailed information on acquisitions involving companies that sell on-patent branded drugs, covering the 2007–2019 period. We find that approximately one-third of branded drugs are acquired by a different company during their patent terms, but only a few “overlap” acquisitions consolidate ownership of drugs in the same therapeutic area. Next, we use a two-way fixed-effects approach to measure how prices and patient access respond to mergers. We find that all newly acquired drugs experience price growth following acquisitions. However, only those acquired by larger companies see an increase in their effective net price. Drugs involved in overlap acquisitions only see higher price growth if the acquisition was small enough to escape regulatory scrutiny, suggesting that antitrust agencies are imposing effective constraints on potentially anti-competitive agreements.

Effects of parental migration on the education of left-behind children

This study investigates the effects of remittances and migration on the school dropout rate of left-behind children in rural Bangladesh. Using household survey data from a two-wave panel, conducted by Bangladesh Integrated Household Survey (BIHS) in 2011 and 2015, this study combines the fixed-effects approach with a linear probability model and instrumental variable (IV) strategy to control for the possible endogeneity of migration and remittances. The estimated results show that children from remittance-receiving households are less likely to drop out of school, while parental migration has substantial disruptive effects. Heterogenous analysis indicates that boys seem to benefit from remittances in both primary and secondary school. However, girls do not move beyond primary education even when the household receives additional funds from remittances. The findings also suggest that remittances relax the poor households' budget constraints, making it easier for them to invest in their children. In contrast, the effect of remittances is insignificant for children in wealthier households. Therefore, the results may provide some guidance for policymakers in their efforts to increase the school attainment of children, especially for those who live in migrant households.

Investigating the dynamic impact of firm-specific and macroeconomic drivers on profitability of general insurance companies in Bangladesh

This paper aims to investigate the relationship between profitability measured with ROE along with EPS and several industry-specific factors such as underwriting risk, reinsurance dependence, solvency margin, leverage, liquidity risk, premium growth, size of the company, tangibility of assets as well as macroeconomic factors such as GDP growth, inflation, and stock market development of the general insurance companies of Bangladesh based on the sample of 7 insurance companies for the period of 2010-2019. For the analyses, several econometric models have been adopted to estimate the coefficients such as Pooled OLS, Cross-sectional GLS, Fixed-effect, Random-effect, and One-step GMM approaches. Moreover, diagnostic tests have also been conducted to examine the validity of the models such as model specification tests, heteroskedasticity tests, multicollinearity tests, autocorrelation tests, and unit-root tests. According to the computed coefficients, none of the macroeconomic variables utilized in the model affects profitability, except inflation, which positively affects ROE. Underwriting risk and size are found to negatively affect ROE but positively affect EPS. Of the two measures of profitability, only the EPS is affected by premium growth. Except for Fixed-effect, reinsurance dependence has a large positive influence on EPS and ROE. In contrast, liquidity and leverage have a positive impact on ROE. The tangibility of assets negatively affects both EPS and ROE where EPS is significant and ROE is insignificant only under fixed effect. Aside from premium growth, underwriting risk and solvency margin have a positive impact on EPS. Finally, using the GMM technique, we find that no lag variables are significant, indicating no profitability persistence. However, the model fits the data well for predicting EPS and ROE as profitability measures explaining 89.38 percent of EPS variation and 80.38 percent of ROE variation using Pooled OLS.