Household , Income And Labour Dynamics In Australia Research Articles

The role of impulsivity and financial satisfaction in a moderated mediation model of consumer financial resilience and life satisfaction

PurposeThis paper explores the direct and indirect associations between financial resilience and life satisfaction, using the moderation of non-impulsive behavior and mediation of financial satisfaction.Design/methodology/approachThe authors analyze the Australian household dataset, named the Household, Income and Labour Dynamics in Australia (HILDA) Survey, to meet the objectives of this paper. Furthermore, the authors use the PROCESS Models 4 and 7 to test the mediation and the combined moderated mediation relationships, respectively.FindingsThe authors find the complete mediation of the relationship between financial resilience and life satisfaction by financial satisfaction. Also, this study finds that both financial resilience and non-impulsive behavior positively contribute to financial satisfaction, which is positively associated with life satisfaction.Practical implicationsThis research supports the need for consumers to build emergency funds as financial resilience is related to consumer well-being. This research also recommends that impulsive behavior should be addressed by the personal finance curriculum and financial advisors.Originality/valueThis research contributes by showing that financial satisfaction is an important predictor of consumers’ well-being. The ability to access financial resources, which increases for non-impulsive consumers, is associated with increased life satisfaction but only via financial satisfaction.

Locus of control and the mental health effects of local area crime

RationaleExposure to local crime can constitute profound and continuing trauma with significant mental health implications. This is true for both victims and others within society who have not been directly victimised. Yet, for most policymakers, understanding what can be done to help victims to improve their level of mental wellbeing, has proved to be extremely challenging. ObjectiveOur objective is to explore the role of locus of control (LoC), an important personality trait, in helping victims to develop resilience against crime. Specifically, we seek to examine the impact of local area crime rates on the mental health of residents and whether a person's LoC can help build resilience against the negative mental health effects from local area crime. MethodsUsing 19 waves of longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, covering 15,245 adults between the ages of 21 and 59 years, we employ an empirical strategy that addresses the issue of sorting and endogenous crime-related moving behaviour. ResultsWe find that local area crime lowers mental health for residents, and that those who are more internal on LoC are more resilient to the adverse effects of local crime on mental health. Our results also show that social capital, physical activity, perceived safety and neighbourhood satisfaction are mechanisms through which LoC moderates the effect of local crime on mental health. ConclusionOur findings have important implications for developing policies that seek to address the negative effects of crime. We propose policies that promote building safer communities and fostering social inclusion as ways to reduce the effect of crime on mental health.

How many children are exposed to at-risk parental gambling in Australia? Results from a representative national sample

Children of problem gamblers are at risk of harm, however, there are no population level estimates as to how many children are currently exposed to parental problem- and at-risk gambling. The current study analysed data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, a nationally representative survey, to derive the first ever national estimates of the proportion of problem, moderate, and low risk gamblers (as measured by PGSI) in the Australian parent population. It also reports how many children under 15 years of age in Australia are exposed to parental gambling across the gambling risk categories. The results show that 13.7% of all Australian families with dependent children are currently exposed to some level of gambling risk due to parental gambling, and nearly 4% of families with children are exposed to parental moderate risk or problem gambling. This corresponds to almost 200,000 children each year. The results and approach of this study will guide future examination of child wellbeing in families where parents experience problems with gambling. The results are discussed in the context of public health approaches to familial gambling harm.

Alcohol consumption trajectories over the Australian life course.

Background and AimsAlcohol consumption changes markedly over the life course, with important implications for health and social development. Assessment of these patterns often relies on cross‐sectional data, which cannot fully capture how individuals' drinking changes as they age. This study used data from 18 waves of a general population panel survey to measure drinking trajectories over the life course in Australia.Design and SettingLongitudinal survey data from the Household, Income and Labour Dynamics in Australia (HILDA) survey between 2001 and 2018.ParticipantsA total of 20 593 individuals ages 15 or above in two samples assessing quantity‐frequency (n = 20 569, 52.0% female) and risky single occasion drinking (RSOD), respectively, (n = 17 340, 52.5% female), interviewed as part of HILDA.MeasurementsUsual quantity of alcohol consumed per drinking occasion; frequency of drinking occasions per week; average daily consumption, calculated by combining reported usual quantity and frequency; and average reported frequency of RSOD per week.FindingsMultilevel, mixed effects models run with fractional polynomial terms found similar male and female alcohol consumption trajectories for quantity‐frequency and RSOD measures. Usual quantity of alcohol consumed per drinking occasion (5.4 drinks for men, 3.8 for women) and RSOD frequency (0.56 occasions/week for men, 0.38 for women) peaked in young adulthood, whereas frequency of drinking occasions (2.5 occasions/week for men, 1.7 for women) peaked in middle age. Middle‐age drinkers had the highest average daily consumption of alcohol (1.4 drinks/day for 54‐year‐old men, 0.6 drinks for 57‐year‐old women) and engaged in RSOD slightly less than young adults.ConclusionsAlcohol consumption in Australia appears to vary substantially over the life course, with usual quantity per drinking occasion and frequency of risky single occasion drinking peaking during early adulthood and average daily consumption and frequency of consumption peaking in middle age.

Compensating Wage Differentials for Job Fatality and Injury Risk in Australia*

This study explores whether compensating wage differentials (CWDs) are still found for Australian workers using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, and risk data from Safe Work Australia. Our study finds evidence of CWDs for the risk of workplace fatalities that are smaller in magnitude compared to the estimates previously reported in the 1990s for Australia. We find limited evidence of CWDs for the risk of workplace non‐fatal injuries. Using panel data and a risk variable that varies by both the worker’s industry and occupation of employment, we find that Australian workers who face the mean level of fatality risk receive a CWD of between 0.13% and 0.44% for a unit increase in risk, depending on the model specification. These estimates correspond to a value of statistical life of $9.7 million and $34.9 million.

Psychometric assessment of scales for measuring loneliness and social isolation: an analysis of the household, income and labour dynamics in Australia (HILDA) survey

BackgroundLoneliness and social isolation are increasingly recognised as global public health threats, meaning that reliable and valid measures are needed to monitor these conditions at a population level. We aimed to determine if robust and practical scales could be derived for conditions such as loneliness and social isolation using items from a national survey.MethodsWe conducted psychometric analyses of ten items in two waves of the Household, Income and Labour Dynamics in Australia Survey, which included over 15,000 participants. We used the Hull method, exploratory structural equation modelling, and multidimensional item response theory analysis in a calibration sample to determine the number of factors and items within each factor. We cross-validated the factor structure using confirmatory factor analysis in a validation sample. We assessed construct validity by comparing the resulting sub-scales with measures for psychological distress and mental well-being.ResultsCalibration and cross-validation consistently revealed a three-factor model, with sub-scales reflecting constructs of loneliness and social isolation. Sub-scales showed high reliability and measurement invariance across waves, gender, and age. Construct validity was supported by significant correlations between the sub-scales and measures of psychological distress and mental health. Individuals who met threshold criteria for loneliness and social isolation had consistently greater odds of being psychologically distressed and having poor mental health than those who did not.ConclusionsThese derived scales provide robust and practical measures of loneliness and social isolation for population-based research.

Transformation, disruption or cumulative disadvantage? Labor market and education trajectories of young mothers in Australia.

Young motherhood is often framed as detrimental to the life chances of young women with research showing negative impacts on education and labor market outcomes. At the same time, qualitative research reports narratives of motherhood as a transformative experience, providing motivation for a fresh start and moving young women away from previously unstable life pathways. These scenarios appear contradictory, however outcomes might vary for different groups of women depending on their pre-birth trajectories. We investigate the effects of early parenthood using the Household, Income and Labour Dynamics in Australia (HILDA) survey. We employ a sequence based approach to compare labor market- and educational precarity of young mothers and non-parenting peers. We employ a novel sequence matching technique creating a comparison group of non-parenting young women, based on similarities in early labor market trajectories. We find that young mothers have higher levels of precarity in their pre-birth trajectories. Moreover, our results show that becoming a young mother is connected to an average increase in labor market and educational precarity post birth, which supports the hypothesis of cumulative disadvantage. However, only mothers with the least precarious trajectories prior to birth experience this development, whereas young women already on highly precarious paths see a decrease in precarity over time. Although our results do not support cumulative disadvantage for the most disadvantaged women, neither does it support the idea of parenthood as a transformative event. Our results point to the importance of understanding heterogeneity in the outcomes of young mothers.

Personality trait level and change predict future financial well-being: A longitudinal study in Australia

This study examined whether Big Five personality traits and their longitudinal trajectories can predict future levels of subjective financial well-being. Data were obtained from the Household, Income, and Labour Dynamics in Australia (HILDA) survey (N = approximately 11,300). Personality traits were measured four times between 2005 and 2017, while subjective financial well-being was measured in 2020 and served as a distal outcome. Results of latent growth curve analysis showed that initial levels of emotional stability and conscientiousness and their rates of change predicted future levels of subjective financial well-being. Individuals with higher initial levels and larger increases in emotional stability and conscientiousness were more likely to have higher future levels of financial well-being.

The Intergenerational Transmission of Mental and Physical Health in Australia: Evidence Using Data From the Household Income and Labor Dynamics of Australia Survey.

Promoting good health across the life course is high on countries agenda. There is a growing evidence base that health is correlated across generations. We examine the persistence of physical and mental health status across generations and explore how different early life factors and adult outcomes impact on this association. In particular, we focus on childhood disadvantage and childhood health, educational attainment, and social mobility measured by household income compared to one's parents. We use data from 19 waves of the Household, Income and Labor Dynamics in Australia (HILDA) Survey. The analysis is restricted to young adults (aged 25–35 years old in 2019) and their parents. We find an intergenerational correlation in health which ranges from 0.19 for physical health to 0.20 for the QALY and 0.21 for mental health. After we include covariates related to childhood disadvantage, childhood health, educational attainment, and social mobility, the intergenerational correlations are reduced to 0.13 for physical health, 0.18 for mental health, and 0.14 for QALYs. We find that early life disadvantage is the only factor influencing the intergenerational correlation for all health measures. Policy focusing on reducing the negative impact of early life disadvantage is likely to have a larger impact on improving health across the life course and reducing intergenerational health inequalities.

Simulating the Consequences of Adaptive Survey Design in Two Household Panel Studies

Abstract Adaptive survey design has been proposed as a solution to the decreasing response rates and higher costs associated with surveys. Much of the adaptive survey design research to date focuses on cross-sectional surveys, yet it seems there is greater potential for this approach within longitudinal surveys as data on the respondent and their survey experience builds each wave. We consider the short- to medium-term impacts of modifications to fieldwork processes in the context of two household panels. We use waves 11–16 of the Household, Income and Labour Dynamics in Australia (HILDA) Survey and waves 1–6 of the UK Household Longitudinal Study (also known as Understanding Society) to simulate eight alternative follow-up strategies. Cases are targeted based on their likelihood to improve sample balance (representativeness), as measured by the R-indicator, or to provide a response, or a combination of these components. Both individual- and household-level targeting are considered. We assess the extent to which these adjustments to fieldwork efforts impact the response rates, sample representativity, and cost. We find that if the follow-up fieldwork effort were reduced by 25 percent the least detrimental strategy is where the best households in terms of improving the R-indicator or the response rates are issued to field for follow-up. This approach resulted in the same sample balance as obtained with full follow-up practice, saved between 17 and 25 percent of follow-up calls but dropped the full balanced panel response rate over four years by 8–12 percentage points.

Neighbourhood Socio-Economic Circumstances, Place of Residence and Obesity amongst Australian Adults: A Longitudinal Regression Analysis Using 14 Annual Waves of the HILDA Cohort

The prevalence of overweight and obesity is rising dramatically worldwide, including in Australia. Therefore, the necessity of identifying the risk factors of overweight and obesity is pivotal. The main objective of this study is to investigate the influence of neighbourhood socio-economic circumstances and place of residence on obesity amongst Australian adults. This study has used nationally representative panel data on 183,183 person-year observations from 26,032 unique Australian adults from the Household, Income, and Labour Dynamics in Australia (HILDA). Random-effects logistic regression technique was employed to examine the relationships. The prevalence of overweight and obesity has been found at approximately 34% and 24%, respectively. The most striking result to emerge from the analyses is that adults living in the most socio-economic disadvantaged area were 2.04 times (AOR: 2.04, 95% CI: 1.57–2.65) and adults from regional cities of Australia were 1.71 times (AOR: 1.71, 95% CI: 1.34–2.19) more prone to be obese compared to their healthy counterparts. The prevalence of overweight and obesity is very high among Australian adults, especially those living in disadvantaged neighbourhoods and the regional cities. Unhealthy levels of BMI have costly impacts on the individual, the economy, and the health care system. Therefore, this study emphasises effective weight control strategies that can potentially tackle the obesity epidemic in Australia.

Obesity and the risk of developing chronic diseases in middle-aged and older adults: Findings from an Australian longitudinal population survey, 2009-2017.

Overweight and obesity impose a significant health burden in Australia, predominantly the middle-aged and older adults. Studies of the association between obesity and chronic diseases are primarily based on cross-sectional data, which is insufficient to deduce a temporal relationship. Using nationally representative panel data, this study aims to investigate whether obesity is a significant risk factor for type 2 diabetes, heart diseases, asthma, arthritis, and depression in Australian middle-aged and older adults. Longitudinal data comprising three waves (waves 9, 13 and 17) of the Household, Income and Labour Dynamics in Australia (HILDA) survey were used in this study. This study fitted longitudinal random-effect logistic regression models to estimate the between-person differences in the association between obesity and chronic diseases. The findings indicated that obesity was associated with a higher prevalence of chronic diseases among Australian middle-aged and older adults. Obese adults (Body Mass Index [BMI] ≥ 30) were at 12.76, 2.05, 1.97, 2.25, and 1.96, times of higher risks of having type 2 diabetes (OR: 12.76, CI 95%: 8.88-18.36), heart disease (OR: 2.05, CI 95%: 1.54-2.74), asthma (OR: 1.97, CI 95%: 1.49-2.62), arthritis (OR: 2.25, 95% CI: 1.90-2.68) and depression (OR: 1.96, CI 95%: 1.56-2.48), respectively, compared with healthy weight counterparts. However, the study did not find any evidence of a statistically significant association between obesity and cancer. Besides, gender stratified regression results showed that obesity is associated with a higher likelihood of asthma (OR: 2.64, 95% CI: 1.84-3.80) among female adults, but not in the case of male adults. Excessive weight is strongly associated with a higher incidence of chronic disease in Australian middle-aged and older adults. This finding has clear public health implications. Health promotion programs and strategies would be helpful to meet the challenge of excessive weight gain and thus contribute to the prevention of chronic diseases.

Heterogeneity in the subjective well-being impact of access to urban green space

There is a growing body of literature on the impact of urban green space (UGS) on residents’ subjective well-being (SWB). However, few studies analyze how SWB impacts of UGS may depend on the quality aspects of UGS, and even fewer studies analyze how impacts may vary across the different levels of SWB. Drawing on individual data from the Household, Income and Labour Dynamics in Australia (HILDA) survey over 2001-17 for Melbourne, this paper estimates a set of hedonic models of SWB to explain the heterogeneity in SWB impacts of UGS. The results show that the size of UGS matters and that UGS impact on SWB varies considerably across different well-being levels. Specifically, individuals with low levels of SWB, overall, demonstrate much less responsiveness to proximity to UGS than individuals with high levels of SWB. Unless combined with other determinants of SWB, we argue that conventional interpretations of urban planning ideals may exacerbate, rather than mitigate, social well-being inequality. Moreover, the design of UGS, such as green corridors, can help to emulate well-being enhancing dimensions of UGS in already built-up areas.

Locus of control and energy poverty

We examine the impact of locus of control (LoC) on energy poverty. Using 15 waves of longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey and a supplementary dataset that collects information on household energy choices, we examine the direct effects of LoC on subjective and objective indicators of energy poverty. We also examine the role of savings, gambling behaviour, trust and household energy choices as potential channels through which LoC transmits to energy poverty. We find that being more internal on LoC is associated with a lower likelihood of being energy poor. Specifically, a one standard deviation increase in being more internal on LoC is associated with a 0.028 standard deviation decline in the probability of being energy poor as defined by the low-income high-cost measure of energy poverty and a 0.125 standard deviation decline in the probability that one is unable to heat their home. We find that savings, gambling behaviour, social capital and being proactive in installing energy-saving lighting and not leaving the lights on in the house throughout the day are channels through which LoC influences energy poverty.

Informal care and savings

ABSTRACT Using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this paper examines to what extent informal care provided by couples and single individuals affects their household savings. This paper is one of the first attempts to examine the relationship between informal care and savings. There are both negative and positive effects of informal care on wealth accumulation, but we do not know which of these effects dominate. We estimate quantile regression models and find that informal care provision has limited negative impacts on changes in household wealth formation. There was no effect of caring on wealth formation for the lower quantile and the negative effects are limited to the mid to high quantile groups.

Intergenerationally penalized? The long-term wage consequences of parental joblessness

Studies of intergenerational stratification and mobility have long called for investigation of the joint role of mothers and fathers in affecting labor market outcomes of children. However, long-term effects of parental joblessness—where no co-residing parent is employed at a given time—are not well understood. Using longitudinal data (covering 9942 person-year observations from 2281 children) from the Household, Income, and Labour Dynamics in Australia (HILDA) Survey, this study investigates the long-term association between parental joblessness and children's wages during early adulthood. It examines whether these associations are mediated by family income during childhood and adolescence, educational attainment, and subsequent employment inactivity of the child, and whether exposure at earlier ages is associated with more detrimental effects. Multilevel mixed-effects models regressing hourly wages in early adulthood (observed over 2008–2018) on the proportion of time spent living in a household where no parent is employed (observed over 2001–2007) reveal two major findings. First, exposure to parental joblessness during childhood and adolescence is correlated with adverse wage outcomes during early adulthood in addition to previously documented employment penalties, with similar estimates across age groups. Second, mediation analyses indicate that household income, children's educational attainment, and children's own inactivity reduce the magnitude of this wage penalty, but do not completely offset it.

School-to-work transition and subjective well-being in Australia.

The school-to-work transition is a demanding period during an individual's life course in all societies particularly because the educational decisions made during this period have long-lasting consequences in multiple life domains. Moreover, adverse starting points after secondary school are likely to lead to adverse outcomes that might cumulate over the life course. This study analyses subjective well-being during this sensitive period and examines the following two questions. First, how do different school-to-work transitions relate to subjective well-being changes? Second, how does subjective well-being develop during and after secondary schooling? As the school-to-work transition period is structured by gender, each analytical step aims to identify gender differences. Furthermore, based on life course theories, this study investigates whether adverse starting points after secondary school lead to cumulative effects in the development of subjective well-being. Based on data from the Household, Income and Labour Dynamics in Australia (HILDA) survey and fixed effects regressions, our results reveal that transitions to employment increase subjective well-being, while transitions to unemployment decrease subjective well-being. Furthermore, transitions to study increase subjective well-being only among men, while such transitions appear to decrease subjective well-being among women. The results related to the development of subjective well-being indicate that subjective well-being decreases during secondary schooling and continues to decrease after individuals leave school. This decrease is stronger among men. Finally, our results reveal the negative cumulative effects of adverse starting points on the development of subjective well-being. Overall, the results reveal great intra-individual variation in subjective well-being during the school-to-work transition period in Australia.

Age and gender differences in the relationship between obesity and disability with self-perceived employment discrimination: Results from a retrospective study of an Australian national sample

BackgroundHealth status is a crucial determinant of an individuals’ labour market outcomes. The present study investigates the association between obesity and disability with perceived employment discrimination within Australia. MethodsA total of 17,174 person-year observations from the 11,079 respondents were analysed using four waves of data from the Household, Income, and Labour Dynamics in Australia (HILDA) survey. The primary outcome examined was employment discrimination, using obesity and disability as the main exposure variables. The longitudinal random-effects regression technique was applied to investigate the between-person differences in employment discrimination associated with obesity and disability. ResultsThe findings suggest that more than one in ten (12.68 %) Australians experienced employment discrimination. The odds of being discriminated against while applying for a job were 1.56 times (aOR: 1.56, 95 % CI: 1.15–2.11) higher for obese than their healthy weight counterparts in youngest women. Adults with a disability had 1.89 times (aOR: 1.89, 95 % CI: 1.65–2.17) higher odds of being discriminated against than peers without disability. ConclusionThe results provide evidence that obesity and disability contribute to employment discrimination in Australia. The findings can assist government and related agencies to consider the adequacy of existing discrimination legislation and help organisations to develop appropriate policies to address discrimination against obese and disabled people in their workplaces.

Moral hazard in Australian private health insurance: the case of dental care services and extras cover

We assess ex post moral hazard in Australian private health insurance (PHI) relating to dental care services (so-called extras cover) using the longitudinal Household, Income and Labour Dynamics in Australia (HILDA) Survey. Cross-sectional probit regressions specify dental care use as a function of dental care demand and endogenous PHI policy holding, including self-assessed health condition, health risk factors and socio-economic controls including age, income, education, family structure and welfare status. We find that ex post moral hazard results in the additional use of dental care services by PHI holders. Further, dynamic analysis indicates that PHI, no matter how sporadic, is always associated with significantly more likely use of dental care services, increasing when continuously held, suggesting strong persistence in moral hazard.

Subjective Wellbeing Dynamics

AbstractA large multidisciplinary literature has sought to explain how a person's wellbeing changes over time in response to individual life events (for example, unemployment), and to larger scale interventions and events (for example, natural disasters). The Household, Income and Labour Dynamics in Australia (HILDA) Survey has been a key data source for such explorations because of its consistency, longevity and breadth of information. Through a review of past studies, we highlight some important features in the dynamics of subjective wellbeing; particularly focusing on the speed of adaptation to wellbeing shocks, and the presence of heterogeneity in adaptation profiles.