Household , Income And Labour Dynamics In Australia Research Articles

A bi-directional association between weight change and health-related quality of life: evidence from the 11-year follow-up of 9916 community-dwelling adults.

To examine the prospective associations between body mass index (BMI) and health-related quality of life (HRQoL). Data were extracted from a longitudinal, nationally representative sample of 9916 men and women aged 18years and over who were followed annually between 2006 and 2016 in the Household, Income and Labour Dynamics in Australia (HILDA) survey. HRQoL was assessed using the self-administered SF-36 questionnaire annually between 2006 (baseline) and 2016. BMI was calculated from self-reported height and weight and was classified into the following four categories of baseline BMI: underweight (< 18.5kg/m2), normal weight (18.5-24.9kg/m2), overweight (25-29.9kg/m2) and obese (≥ 30kg/m2). We used linear mixed-effects regression models to investigate the associations between change in BMI (kg/m2) and concurrent changes in HRQoL scores over 11 years. BMI gain was associated with deterioration of Physical Component Summary (PCS) (P < 0.001), but not with change in Mental component summary (MCS) over the 11-year period. BMI gain was inversely associated (P < 0.001) with five of the eight HRQoL domains (physical functioning, role physical, bodily pain, general health and vitality) with a significant graded association according to baseline BMI category. Over the 11-year study period, every unit increase in PCS was associated with a decrease of 0.02 (P < 0.001), 0.03 (P < 0.001) and 0.04 (P < 0.001) BMI units per year among participants who were normal, overweight and obese at baseline, respectively. Five of the eight domains of HRQoL (physical functioning, role physical, bodily pain, general health and vitality) were inversely associated with BMI (P < 0.001) with a significant graded association according to baseline BMI category. Weight gain was not only associated with deterioration of HRQoL, and vice versa. The bi-directional association was stronger for physical than mental domains of HRQoL.

Dual-Parent Joblessness, Household Work and Its Moderating Role on Children’s Joblessness as Young Adults

Using data from the Household, Income, and Labour Dynamics in Australia (HILDA) Survey, we examine whether living in jobless families where parents devote more time to household work shields children against their own joblessness in the future. We draw on a representative sample of young adults who were aged between 4 and 17 years in 2001 and lived with both parents through to 2007 ( N = 1,852). A series of mixed-effect regression models suggest that dual-parent joblessness is associated with an increase in families’ overall household production. The extra household work of fathers has a moderating role on young people’s later joblessness in young adulthood; young adults raised in households in which fathers increase their household work time during jobless periods are less likely to themselves become jobless as adults. This effect is not found if mothers increase their household work time.

Ethnic diversity, energy poverty and the mediating role of trust: Evidence from household panel data for Australia

Abstract Energy poverty is now a major concern on the public policy agenda in many countries. However, evidence on the determinants of energy poverty is relatively scant. Our study contributes to the debate on the determinants of energy poverty by being the first to examine the impact of ethnic diversity on household energy poverty. Using 12 waves of longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, we find that, in Australia, ethnic diversity is positively associated with energy poverty. Our preferred instrumented estimates suggest that a standard deviation increase in ethnic diversity is associated with a 0.103–0.422 standard deviation increase in energy poverty, depending on how energy poverty is measured. This finding is generally robust to alternative ways of measuring ethnic diversity and energy poverty. We identify trust as an important channel through which ethnic diversity operates and point to the need for policies that engender social capital in multicultural societies as a means to harness the benefits of diversity.

Fuel poverty and subjective wellbeing

We use 13 waves of the Household, Income and Labour Dynamics in Australia (HILDA) survey to examine the effect of fuel poverty on subjective wellbeing (SWB) in Australia. We find that being in fuel poverty lowers SWB. When we instrument for fuel poverty using electricity and gas prices, we find that a standard deviation increase in fuel poverty is associated with declines of 0.168–0.458 standard deviations in SWB, depending on how fuel poverty is measured. The general conclusion that fuel poverty lowers SWB is robust to alternative ways of measuring fuel poverty, a suite of estimation approaches and other sensitivity checks.

Financial Literacy, Behavioral Factors, and Problematic Debt-Taking: An Empirical Analysis of Relationships in Australia

Unpaid credit card debt can be problematic; people should avoid it where possible. Unlike prior studies, this paper examines the relative strength of the association of financial literacy, attitude towards balancing spending and savings, and financial satisfaction with credit card debt-taking behavior by analyzing the 2016 wave of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. We find that higher financial literacy is associated with less credit card debt. However, incorporating the other factors reduces this relationship. Our results advise policy-makers to include components in the financial literacy curricula which encourage savings attitude to reduce problematic debt-taking.

Financial Autonomy Among Emerging Adults in Australia

This paper investigates how financial autonomy develops in young adults and under what circumstances that development process is hastened or hindered. The paper uses longitudinal data from the Household, Income, and Labour Dynamics in Australia (HILDA) survey for persons aged 15-25, thus following young people from the time they are adolescents and into adulthood. We develop a novel measure of financial autonomy based on an individual’s degree of responsibility for household decision-making related to (a) managing day-to-day spending, (b) making large household purchases, and (c) savings and investments. Measuring financial autonomy allows us to observe a period of “emerging adulthood” as opposed to merely delaying nest-leaving due to cost-constraints (i.e. costs of living). If emerging adulthood plays an important role in young adults’ development, we would expect to see steadily increasing levels of financial autonomy while the young adults are still at home. If on the other hand, delayed nest-leaving is only due to costs-constraints, we would not expect to observe such a period of systematic preparation for independent living. We estimate a correlated random-effects model for the latent financial autonomy construct, specifying a range of covariates related to individual demographic and resource characteristics, household characteristics, and regional factors. For men, there is a significant and positive age gradient associated with financial autonomy. There is no evidence of an age profile for young women whose level of financial autonomy is mostly explained by their household- and regional characteristics. This suggests that the phase of “emerging adulthood”, in which financial autonomy is learned over time at home, plays an important role for young men but not for young women. This systematically puts young women at a potential disadvantage compared to young men, and consequently at a higher risk of low financial literacy and poor financial decision-making in the period after nest-leaving.

From Parent to Child? The Long-Lasting Effects of Social Support

Social bonds and supportive relationships (social support) are widely recognised as being indispensable to healthy psychological functioning and wellbeing. Applying a multilevel approach to the 2001-2016 Household, Income and Labour Dynamics in Australia (HILDA) data, we assess the impact of social support experienced by the parents during an individual's childhood on the individual's capacity to establish adequate social support in adult life. The level of social support experienced by the parents is measured during childhood/adolescence. Our findings show that, in addition to individual characteristics and other parental outcomes, the social support experienced by parents is an important predictor of the level of social support experienced by young adults. In particular, the mother's social support is an important predictor of the level of social support experienced by young female adults, while the father's social support is an important predictor of the level of social support experienced by young male adults. This evidence is further supported in an alternative specification based on sibling observations accounting for family fixed effects, finding that some individuals experience more social support when they are aged in their twenties than other individuals as a result of the family environment in childhood. In particular, social support experienced by parents explains about 16% of the initial family vari-ance experienced by siblings.

Weekend Work and Work-Family Conflict: Evidence from Australian Panel Data

Objective: This paper investigates whether weekend work is associated with higher levels of work-family conflict (WFC) among parents, and whether resources like schedule control or presence of a partner mitigate this effect. Background: The 24/7 economy requires many workers to work on weekends. Nevertheless, research on the impact of weekend work on families, and on WFC in particular, is underdeveloped, with previous studies relying on cross-sectional data and small samples. Method: Associations between regular weekend work and a measure of WFC are examined using data from fourteen waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The sample is restricted to workers aged 18 to 64 years with parenting responsibilities for children aged 17 or less (7,753 individuals, 40,216 observations). Both pooled ordinary least squares and fixed-effects regression models are estimated. Results: Among both genders, weekend workers have significantly higher levels of WFC than those who only work weekdays. WFC is particularly high for those who work weekends and simultaneously have little control over their schedule. And whereas WFC is generally higher for single parents, weekend work affects WFC similarly for couple and single parents. Conclusion: Weekend work generally has a detrimental effect on workers’ ability to combine employment with parenting commitments. However, work-domain resources like schedule control can buffer the impact of weekend work.

Measuring geographic mobility: Comparison of estimates from longitudinal and cross-sectional data

Attrition of sample members from a longitudinal survey can undermine the quality of the data and its research potential, especially when the sample members who drop out are different from those who do not. People who move house are more likely to drop out of the survey as they are harder to locate, and once located, may be harder to interview in the remaining fieldwork time available. Moving coincides with many other life events (such as changes in marital status, the birth of a child, buying a home, changes in employment, or retirement) and if movers are not adequately interviewed, this may result in the study under-representing these changes and the events that occur after a move. This paper examines the weighted estimates of the rate of moving by age in a long running household panel study, the Household, Income and Labour Dynamics in Australia (HILDA) Survey, compared to official cross-sectional data sources and probabilistically linked Census data. Geographic mobility is examined over one-, five- and 10-year periods. Some of the differences that occur in the mobility estimates is a result of item non-response or recall error in the cross-sectional sources but little evidence is found of the differential impact of attrition in the HILDA Survey. There is, however, some indication that the longitudinal survey data may underrepresent long distance moves. Other differences between the data sources are investigated by fitting logistic regression models of mobility to estimate the effect of housing tenure and education levels over the life course. These models show similar overall trends, but there is some evidence of differential effects for renters with lower education levels which may be due, at least in part, to the differential role recall error plays in these measures. Overall, these findings reassure longitudinal data users of the quality of geographic mobility estimates from the HILDA Survey and encourage similar comparisons to be made for other longitudinal data sources.

Do gender and psychosocial job stressors modify the relationship between disability and sickness absence: An investigation using 12 waves of a longitudinal cohort.

Objectives A considerable proportion of the working population reports a disability. These workers may be at risk of adverse outcomes, including longer periods of sickness absence. This study examined the causal effect of disability on sickness absence and the role of psychosocial job stressors and gender as effect modifiers. Methods Data on paid and unpaid sick leave, disability (yes/no) and psychosocial job stressors were available from 2005 to 2017 from the Household, Income and Labour Dynamics in Australia (HILDA) survey. Negative binomial models were used to model the rate of sickness absence in a year. Results In the random effects model, workers with disability had 1.20 greater rate of sickness absence in a year [95% confidence interval (CI) 1.17-1.23, P<0.001] after adjustment for confounders. The rate was slightly lower in the fixed effects model. There was evidence of multiplicative interaction of the effect by gender and job control. The effect of disability on sickness absence was greater among men than women, and higher for people with low job control compared to those with high job control. Conclusions There is a need for more research about the factors that can reduce sickness leave among workers with disabilities.

Working hours mismatch, job strain and mental health among mature age workers in Australia

Previous literature has discussed the relationships between non-participation and underemployment in the labour market with health and wellbeing, including the impact of these circumstances on mental health. While it is sometimes argued that a mismatch between the actual number of hours worked and people’s preferences about the amount of work they want has an association with mental health, findings are mixed. Moreover, job characteristics and age-specific factors are often not included in studies exploring these relationships. This paper examines the link between working hours mismatch, job strain and mental health in Australia, focusing on mature age workers (aged 45–64 years), a group of workers for whom these issues have seldom been explored. Results from our panel data estimations, using the Household, Income and Labour Dynamics in Australia (HILDA) Survey, show significant associations between a mismatch of working hours – that is, either working more or less than one’s desired hours – and poorer mental health. Our analysis also suggests that jobs characterised by low levels of control and high demands have a significant negative impact on reported mental health scores. Designing flexible working environments and giving workers more autonomy should be priorities in order to improve the general mental health of mature age workers.

Socioeconomic inequalities in mental health in Australia: Explaining life shock exposure

BackgroundRecent research suggests that there exists a strong link between life shocks and mental health. However, research on the distributional aspects of these shocks on mental health status is limited. In the health inequality literature no Australian studies have examined this relationship. ObjectiveThis study examines the distributional impact of life shocks (negative life events and financial hardships) on mental health inequality among different socioeconomic groups in a longitudinal setting in Australia. MethodsThis study analysed the data of 13,496 individuals from the Household, Income and Labour Dynamics in Australia (HILDA) survey, waves 12–17 (2012–2017). Using concentration index and Blinder-Oaxaca approaches, the study decomposed socioeconomic inequalities in mental health and changes in inequalities in mental health over the study period. The study used frailty indices to capture the severity of life shocks experienced by an individual. ResultsThe results suggest that exposure to just one life shock will result in a greater risk of mental disorder in the most disadvantaged socioeconomic groups. The results also indicate that 24.7%–40.5% of pro-rich socioeconomic mental health inequality are due to life shocks. Financial hardship shocks contributes to 21.6%–35.4% of inequality compared with 2.3%–5.4% inequality generated by negative life event shocks across waves. ConclusionsLower SES groups experience more life shocks than higher SES groups and in turn generate higher socioeconomic mental health inequality. Policies aimed at reducing socioeconomic inequality in mental health should account for these shocks when designing interventions.

Differential Exposure to Job Stressors: A Comparative Analysis Between Migrant and Australia-Born Workers.

Previous studies have suggested that migrants have higher exposures to psychosocial job stressors than native-born workers. We explored migrant status-related differences in skill discretion/job complexity and decision authority, and whether the differences varied by gender, age, and educational attainment. Data were from Wave 14 of the Household Income and Labour Dynamics in Australia (HILDA) Survey. A total number of 9031 persons were included in the analysis. Outcomes included skill discretion/job complexity and decision authority. Exposure included migrant status defined by (i) country of birth (COB), (ii) the combination of COB and English/Non-English dominant language of COB, and (iii) the combination of COB and years since arrival in Australia. Data were analysed using linear regression, adjusting for gender, age, and educational attainment. These covariates were also analysed as effect modifiers of the relationship between migrant status and job stressor exposure. In the unadjusted analysis, only migrant workers from Non-English-speaking countries (Non-ESC-born) had significantly lower skill discretion and job complexity than Australia-born workers (-0.29, 95% CI: -0.56; -0.01); however, results from fully adjusted models showed that all migrant groups, except migrant workers from Main-English-speaking countries, had significantly lower skill discretion and job complexity than Australia-born workers (overseas-born workers, -0.59, 95% CI: -0.79; -0.38; Non-ESC-born, -1.01, 95% CI: -1.27; -0.75; migrant workers who had arrived ≤5 years ago, -1.33, 95% CI: -1.94; -0.72; arrived 6-10 years ago, -0.92, 95% CI: -1.46; -0.39; and arrived ≥11 years ago, -0.45, 95% CI: -0.67; -0.22). On the contrary, the unadjusted model showed that migrant workers had higher decision authority than Australia-born workers, whereas in the fully adjusted model, no difference in decision authority was found between migrant workers and Australia-born workers. Effect modification results showed that as educational attainment increased, differences in skill discretion and job complexity between Australia-born workers and Non-ESC-born migrants progressively increased; whereas Non-ESC-born migrants with postgraduate degree showed significantly lower decision authority than Australia-born workers. This study suggests that skill discretion and job complexity but not decision authority is associated with migrant status. Migrants with high educational attainment from Non-English-speaking countries appear to be most affected by lower skill discretion/job complexity and decision authority; however, differences in skill discretion and job complexity attenuate over time for Non-ESC-born migrants, consistent with an acculturation effect. Low skill discretion and job complexity, to the extent that it overlaps with underemployment, may adversely affect migrant workers' well-being. Targeted language skill support could facilitate migrant integration into the Australian labour market.

Trajectories of Social and Economic Outcomes and Problem Gambling Risk in Australia

While there are many cross-sectional studies that provide data on gambling behaviour and the characteristics of those who gamble, there are few large-scale population based longitudinal studies of gambling. This is a serious limitation. It is increasingly being recognised that longitudinal data is required to properly understand gambling behaviour, trajectories, risks and consequences. This paper makes use of a large-scale longitudinal survey that includes questions on gambling behaviour in Australia: the Household, Income and Labour Dynamics in Australia (HILDA) survey. Although the HILDA survey currently provides data on gambling at a single point in time in 2015, there are data on the individuals, in the majority of cases, back to 2001. This paper analyses the trajectories of a range of social, health and economic outcomes according to self-reported risk of experiencing gambling related problems. The analysis clearly shows that problem gamblers experience significantly worse outcomes than those without gambling problems, and poor outcomes go back a number of years. In a number of cases, outcomes are becoming progressively poorer, which may suggest either increasingly risky gambling behaviour or the cumulative effects of a sustained period of gambling problems. The long-term nature of the poor health and social outcomes experienced by problem gamblers strongly suggests that programs designed to address gambling problems will have to be cognisant of, and address these underlying issues. Effective treatment is thus likely to be long-term and challenging. It also suggests that restricting access to gambling via mechanisms such as pre-commitment or self-exclusion will be effective.

Declining realisation of reproductive intentions with age.

What is the likelihood of having a child within 4years for men and women with strong short-term reproductive intentions, and how is it affected by age? For women, the likelihood of realising reproductive intentions decreased steeply from age 35: the effect of age was weak and not significant for men. Men and women are postponing childbearing until later ages. For women, this trend is associated with a higher risk that childbearing plans will not be realised due to increased levels of infertility and pregnancy complications. This study analyses two waves of the nationally representative Household, Income and Labour Dynamics in Australia (HILDA) survey. The analytical sample interviewed in 2011 included 447 men aged 18-45 and 528 women aged 18-41. These respondents expressed a strong intention to have a child in the next 3years. We followed them up in 2015 to track whether their reproductive intention was achieved or revised. Multinomial logistic regression is used to account for the three possible outcomes: (i) having a child, (ii) not having a child but still intending to have one in the future and (iii) not having a child and no longer intending to have one. We analyse how age, parity, partnership status, education, perceived ability to conceive, self-rated health, BMI and smoking status are related to realising or changing reproductive intentions. Almost two-thirds of men and women realised their strong short-term fertility plans within 4years. There was a steep age-related decline in realising reproductive intentions for women in their mid- and late-30s, whereas men maintained a relatively high probability of having the child they intended until age 45. Women aged 38-41 who planned to have a child were the most likely to change their plan within 4years. The probability of realising reproductive intention was highest for married and highly educated men and women and for those with one child. Our study cannot separate biological, social and cultural reasons for not realising reproductive intentions. Men and women adjust their intentions in response to their actual circumstances, but also in line with their perceived ability to have a child or under the influence of broader social norms on reproductive age. Our results give a new perspective on the ability of men and women to realise their reproductive plans in the context of childbearing postponement. They confirm the inequality in the individual consequences of delayed reproduction between men and women. They inform medical practitioners and counsellors about the complex biological, social and normative barriers to reproduction among women at higher childbearing ages. This research was partly supported by a Research School of Social Sciences Visiting Fellowship at the Australian National University and an Australian Research Council Discovery Project (DP150104248). Éva Beaujouan's work was partly funded by the Austrian Science Fund (FWF) project 'Later Fertility in Europe' (Grant agreement no. P31171-G29). This paper uses unit record data from the HILDA Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this paper, however, are those of the authors and should not be attributed to either DSS or the Melbourne Institute. The authors have no conflicts of interest.

Obesity, Long-Term Health Problems, and Workplace Satisfaction: A Longitudinal Study of Australian Workers

This study investigates the impact of obesity, long-term health problems and their interaction on three specific aspects of job satisfaction among Australian adult workers. Exploiting longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey for the years 2006-2017, this study estimates overall job satisfaction, pay satisfaction and job security satisfaction using a common set of explanatory variables. Results from both random effects generalized least squares estimation and random effects ordered probit model confirm that obesity has a significant negative impact on workers' pay and job security satisfaction. The results indicate that overweight workers are dissatisfied about their job security compared to normal weight peers. The study results reveal that long-term health problems significantly reduce all aspects of job satisfaction of the workers. However, the results indicate that the interaction of obesity and long-term health problems positively influences workers' overall job satisfaction. Overall, the study findings are in line with the hypothesis that obese workers with long-term health problems have low expectations about their job.

Do financial hardship and social support mediate the effect of unaffordable housing on mental health?

Unaffordable housing has a negative impact on mental health; however, little is known about the causal pathways through which it transmits this effect. We examine the role of financial hardship and social support as mediators of this relationship. We identified households where housing costs changed from affordable to unaffordable across two waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey (2014-2015). The sequential causal mediation analysis was used to decompose the total effect of unaffordable housing on mental health into the portion attributable to financial hardship and social support [natural indirect effect (NIE)] and the portion not occurring through measured pathways [natural direct effect (NDE)]. Mental health was measured using the Mental Health Inventory (MHI) and Kessler psychological distress (KPD) scale. Baseline covariates included age, sex, household income, financial hardship, social support, marital status and employment status. Bootstrapping with 1000 replications was used to calculate 95% confidence intervals (CIs). Multiple imputations using chained equations were applied to account for missing data. Unaffordable housing led to a change in mean mental health score on the MHI scale (-1.3, 95% CI: -2.1, -0.6) and KPDS scale (0.9, 95% CI: 0.4, 1.4). Financial hardship accounted for 54% of the total effect on MHI scale and 53% on KPD scale. Collectively, financial hardship and social support explained 68% of the total effect on MHI scale and 67% on KPD scale, respectively. In conclusion, the negative mental health effect of unaffordable housing is largely mediated through increased financial hardship.

Labour Market and Human Capital Behaviour of Immigrant Couples: Evidence from Australia

AbstractWe examine the labour market and human capital investment behaviour of immigrant couples in Australia. The family investment hypothesis (FIH) states that immigrant husbands, whom the FIH assumes to be the primary earners in the family, will invest more in their human capital than immigrant wives, whom the FIH assumes to be secondary earners. Using longitudinal data from Household, Income and Labour Dynamics in Australia (HILDA) for the period 2001 to 2014, we do not find support for the FIH. Instead, we find that foreign‐born husbands and wives share similar labour market assimilation patterns with respect to hours of work and wages. Our estimates suggest that immigrant wives' labour market behaviour can be better explained by their own long‐term career progression and labour market assimilation, than through supporting their husbands' labour market assimilation.

Predictors of health care use in Australian cancer patients.

ObjectiveThe purpose of this study is to measure health care utilization in Australian cancer patients based on their demographic, geographic and socioeconomic backgrounds.MethodA total of 13,609 participants (aged 15 and over) from 7,230 households were interviewed as part of Wave 13 of the national Household, Income and Labour Dynamics in Australia (HILDA) survey. Five hundred and seventeen participants indicated a current cancer diagnosis with 90% of those receiving active treatment at the time of interview. Independent sample t-tests, Pearson Chi-sq tests, Kruskal‒Wallis H test, binary logistic regression and a zero-inflated Poisson regression were used to examine inequality in health care use.ResultsDemographic and sociocultural factors such as advancing age, gender, low income, low education status, rurality, no private health insurance, increased psychological distress and less access to specialist care are associated with lower health care utilization among cancer patients. However, models of care such as general practitioner-led cancer care is preferable in younger individuals with cancer, while accessing specialist care is associated with lower rates of hospitalization and higher levels of psychological distress increases hospital length of stay.ConclusionsThe findings of lower health care utilization by those cancer patients with characteristics of disadvantage have implications for policy development and intervention design. Broadly, policies targeting structural social inequities are likely to increase health care utilization among the most affected/disadvantaged populations. Further investigation is needed to identify potential links between health care utilization and cancer outcomes as a step toward targeted interventions for improving outcomes in the adversely affected groups.

The impact of major life events on household asset portfolio rebalancing

PurposeThis paper aims to model the asset portfolio rebalancing decisions of Australian households experiencing a severe life event shock.Design/methodology/approachThe paper uses household longitudinal data from the Household, Income, and Labour Dynamics in Australia (HILDA) survey since 2001. The major life events are serious illness or injury, death of a spouse, job dismissal or redundancy and separation from a spouse. The asset classes are bank accounts, cash investments, equities, superannuation (private pensions), life insurance, trust funds, owner-occupied housing, investor housing, business assets, vehicles and collectibles. The authors use both static and dynamic Tobit models to assess the impact and duration of impact of the shocks.FindingsSerious illness and injury, loss of employment, separation and spousal death cause households to rebalance portfolios in ways that can have detrimental effects on long-term wealth accumulation through poor market timing and the incurring of transaction costs.Research limitations/implicationsThe survey results are only available since 2001, and the wealth module from which the asset data are drawn is self-reported and not available every year.Practical implicationsRelevant to policymakers working on the ongoing retirement of the “baby boomer” generation and for financial planners guiding household investment decisions.Originality/valueMost research on shocks to household wealth concern a narrower range of assets and only limited shocks. Also, this is one of the few studies to use a random effects model to allow for unspecified heterogeneity among households.