Income Matters Research Articles

The social context of parenting 3‐year‐old children with developmental delay in the UK

Children with intellectual or developmental disability have significantly poorer health and mental health than their non-disabled peers and are at high risk of social exclusion. The aim of the present paper is to provide information on the circumstances in which 3-year-old children at risk of intellectual or developmental disability are growing up in the UK. Secondary analysis of data on 12 689 families in English-speaking monolingual households from the first two waves of the UK's Millennium Cohort Study. A total of 440 children (3% of the weighted sample) were identified as being developmentally delayed. When compared with other children, children with developmental delays were more disadvantaged on every indicator of social and economic disadvantage examined. Two out of three children with developmental delays had been exposed to repeated disadvantage as measured by income poverty, material hardship, social housing and receipt of means-tested benefits. The effect of repeated disadvantage on the risk of developmental delay remained after account was taken of parental education and occupational status. Young children with delayed development in the UK are likely to be exposed to repeated socio-economic disadvantage. Implications for policy and understanding the nature of the link between poverty and child disability are discussed.

When income matters: Customers evaluation of shopping malls’ hedonic and utilitarian orientations

This study, based on 772 shopper's interviews in two shopping malls, establishes that malls can achieve differentiation from their competitors through the pursuit of singular orientations following the hedonic and utilitarian dimensions of shopping. Furthermore, perceived differentiation from competitors is found to positively influence customers’ attachment to the mall, a determining factor in the mall's evaluation. Interestingly, mall's orientation related to hedonic elements was found appealing by all subjects, although slightly more by those with lower income. However, utilitarian orientation appeared strictly effective on those with higher income. Theoretical and managerial implications along with limitations are discussed.

Income matters: reducing the mortality gap

Income matters: reducing the mortality gap

Fiscal policy, private investment and economic growth: the case of Ghana

PurposeThis paper aims to examine the relationships between disaggregated government fiscal policy variables; private capital investment and economic growth in Ghana, as well as the similarities and differences in the impact of these variables on private investment (PI) and economic growth.Design/methodology/approachCointegration and an error‐correction models are used, with time series properties of the variables investigate using augmented Dickey‐Fuller test and cointegration of the variables tested using Engel‐Granger two step procedure.FindingsThe findings indicate that changes in government recurrent expenditure, current government capital expenditure and international trade taxes are significant for growth while changes in tax on domestic goods and services, tax on international trade and tax on income and property matter for private capital investment. The major difference between the impact of fiscal policy on PI and economic growth, however, lies in the direction of impact.Practical implicationsBased on the findings of this study, it is recommended that different policies be pursued in the promotion of PI and economic growth. Also, given the low correlation between PI and economic growth, it is recommended that the Ghanaian private sector be focused on and fully developed in order for it to perform its role as an engine of growth.Originality/valueGrowth has been shown to be influenced by government expenditure and international trade taxes while private capital investment is influenced by taxes on domestic goods and services, international trade and on income and property. Fiscal policy authorities will find these useful.

What More than Parental Income? An Exploration of What Swedish Siblings Get from Their Parents

Sibling correlations are used as overall measures of the impact of family background and community influences on individual outcomes. While most correlation studies show that siblings are quite similar in terms of future achievement, we lack specific knowledge of what it is about family background that really matters. Studies on intergenerational income mobility show that parental income matters to some extent, but they also show that more than half of the family background and community influences that siblings share are not even correlated with parental income. In this paper, we employ a data set that contains rich information about families in order to explore what factors in addition to parental income can explain why siblings tend to have such similar outcomes. Our results show that measures of family structure and social problems account for very little of sibling similarities in adult income above and beyond that already accounted for by parental income. However, when we add a set of indicators for parental involvement and attitudes, the explanatory power of all our variables increased from about a third (using only traditional indicators of socio-economic status) to just over half. Interestingly, indicators of parents' patience, i.e., propensity to plan ahead and willingness to postpone benefits to the future, are particularly important.

The dethronement of income as a cause of health: an essay

Income, whether of nations, groups or individuals, appears in many analyses to have a strong relation to health status and even to be the principal explanatory variable for health differences. Poor people tend to be sicker than average, and sick people tend also to be poorer than average. Of course, income is needed to buy the goods and services that contribute to protecting and improving health, but its importance has been overstated. Cross-sectional relations that ignore history exaggerate how much income matters for health. Income is "dethroned" as the king of explanations by four lines of evidence: (1) distribution matters more than totals or averages, and the distribution of financial protection through insurance, rather than the distribution of income, is particularly crucial; (2) historically, income growth by itself contributed little to health improvements; (3) it matters more, how rapidly and thoroughly people and nations adopt sound health interventions; and (4) some recent changes in lifestyle (diet and physical activity) that accompany income growth actually worsen health. These causes are especially relevant for infant and child health, somewhat less so for maternal health. The less important income is, the easier it is to improve health; so it is good news that countries and people need to escape from poverty, but they don't have to be rich to be healthy.

Children's health status: examining the associations among income poverty, material hardship, and parental factors.

BackgroundWe examined a model of multiple mediating pathways of income poverty, material hardship, parenting factors, and child health status to understand how material hardship and parental factors mediate the effects of poverty on child health. We hypothesized that: (a) poverty will be directly associated with material hardship, parental depression, and health status, and indirectly with parenting behaviors through its effects on parental depression and material hardship; (b) material hardship will be associated with parental depression, parenting behaviors, and health status; and (c) parental depression will be correlated with parenting behaviors, and that both parental depression and parenting behaviors will predict child health.Methods and ResultsWe used data from the 2002 National Survey of American Families for a sample of 9,645 6-to-11 year-olds to examine a 4-step structural equation model. The baseline model included covariates and income poverty. In the hardship model, food insufficiency and medical need were added to the baseline model. The parental model included parental depression and parenting behavior and baseline model. In the full model, all the constructs were included. First, income poverty had a direct effect on health status, and an indirect effect through its association with material hardship, parental depressive affect, and parenting behaviors. Medical need and food insufficiency had negative effects on child health, and indirect effects on health through their association with parental depression and parenting behaviors. Finally, parental depression and parenting behaviors were associated with child health, and part of the effect of parental depression on health was explained by its association with parenting behaviors.ConclusionsPoverty has an independent effect on health, however, its effects are partially explained by material hardship, parental depression and parental behaviors. To improve children's health would require a multi-pronged approach involving income transfers, health insurance coverage, food and nutrition assistance, and parenting interventions.

Smoking in Scottish youths: personal income, parental social class and the cost of smoking

Objective: To examine the relation of young people’s personal income and parental social class with smoking from early to mid adolescence. Design: Longitudinal, school based, study of a cohort of...

Rich State, Poor State, Red State, Blue State: What's the Matter with Connecticut?

We find that income matters more in America than in America. In poor states, rich people are much more likely than poor people to vote for the Republican presidential candidate, but in rich states (such as Connecticut), income has a very low correlation with vote preference. In addition to finding this pattern and studying its changes over time, we use the concepts of typicality and availability from cognitive psychology to explain how these patterns can be commonly misunderstood. Our results can be viewed either as a debunking of the journalistic image of rich latte Democrats and poor Nascar Republicans, or as support for the journalistic images of political and cultural differences between and states—differences which are not explained by differences in individuals' incomes. For decades, the Democrats have been viewed as the party of the poor, with the Republicans representing the rich. Recent presidential elections, however, have shown a reverse pattern, with Democrats performing well in the richer blue states in the northeast and west coast, and Republicans dominating in the red states in the middle of the country. Through multilevel modeling of individual-level survey data and county- and state-level demographic and electoral data, we reconcile these patterns. Key methods used in this research are: (1) plots of repeated cross-sectional analyses, (2) varying-intercept, varying-slope multilevel models, and (3) a graph that simultaneously shows within-group and between-group patterns in a multilevel model. These statistical tools help us understand patterns of variation within and between states in a way that would not be possible from classical regressions or by looking at tables of coefficient estimates.

‘Good luck to them if they can get it’: exploring working class men's understandings and experiences of income inequality and material standards

This paper seeks to contribute to the recent debate within the field of inequalities in health that has focused on the relationship between income distribution and health. This has contested the extent to which the main effects of income on health are not directly related to material standards but operate through psychosocial mechanisms, linked to how people experience and perceive their relative position. However, whilst this has focused attention on the qualitative dimensions of income inequality as a potential determinant of health inequality, very little empirical work has directly examined lay perspectives. In this study I attempted to address this gap by exploring how two groups of working class men living in contrasting socio-economic areas understood and experienced differences in income and material circumstances and how these were perceived to impact on their health. This study shows that the anger and resentment felt by these men had their roots largely in the perceptions of others and the way others treated them, rather than in income differentials per se. There was little evidence of feelings of shame or inferiority. For men at the bottom of the social ladder, financial hardship was additionally perceived as having the greatest impact on their health and well-being.

Do You Enjoy Having More than Others? Survey Evidence of Positional Goods

Although conventional economic theory proposes that only the absolute levels of income and consumption matter for people's utility, there is much evidence that relative concerns are often important. This paper uses a choice experiment to measure people's perceptions of the degree to which such concerns matter, i.e. the degree of positionality. Based on a random sample in Sweden, income and cars are found to be highly positional, on average, in contrast to leisure and car safety. Leisure may even be completely non‐positional. Potential policy implications are discussed.

Income poverty and material hardship: How strong is the association?

Material deprivation has been measured in a variety of ways, such as in terms of income shortfalls or the experience of different types of material hardship. This paper tests the extent to which indicators of hardship are associated with income poverty. Using a U.S. dataset with detailed income and poverty information observed over a few years, we find that timing, duration, and depth of poverty are all associated with material hardships (food insecurity, difficulty meeting basic needs, lack of consumer durables, housing problems, neighborhood problems, and fear of crime). Even very short spells of poverty have a measurable impact on material well-being, although not all types of well-being are affected in equal measures.

Poverty among households with children: a comparative study of Norway and Germany

The purpose of this study was to compare poverty among lone parent households and couple households with children in Norway and Germany. The study applied three different measurement strategies: income poverty, material deprivation and reception of social assistance. We found that income poverty and material deprivation rates are higher in Germany than in Norway and are also higher for lone parents than for couples with children. Our analysis of the reception of social assistance shows a different pattern in which both Norwegian and German lone parents frequently receive social assistance. The results show that the different dimensions of poverty are not independent of one another, nor do they wholly overlap. Household characteristic variables, factors influencing labour market status and educational levels also seem to influence the risk of experiencing poverty.

Five Things Economists and Lawyers Can Learn from Accountants: An Illustration Using the Domestic Production Activities Deduction

This paper is part of the perspectives of three researchers—an economist, an accountant and a lawyer—on tax policy. The domestic production activities deduction in AJCA 2004 provides a specific platform to introduce five concepts from financial accounting that affect tax policy: book income matters; tax rate changes immediately affect earnings; current tax expense does not generally equal taxes paid; accounting mixes different methods and permits management judgment; and consolidation rules differ for book and tax, complicating jurisdictional inferences.

Chudoba, deprivace, sociální vyloučení: nezaměstnaní a pracující chudí

The purpose of the study is to explore the relationship between the forms of labor market marginalization - understood here in terms of labor market status and job quality on the one hand, and income disadvantage, material deprivation and social exclusion on the other hand. Public policies which aim to improve labor market position as well as the income level of people disadvantaged in the labor market are also assessed. We exhaust data of the survey on social exclusion: 2 500 respondents were interviewed, who either were welfare benefits recipients or considered their situation to be comparable with welfare recipients situation. We show that marginalization on the labor market is transparent not only in unemployment spells (often repeated and long-term) but at the same time in temporary, low paid and poor quality job positions. The level of incomes of those who are employed in the lowest segment of the labor market and of the unemployed is very similar while deprivation of the unemployed is greater in many respects, in possibilities of influencing the course of life and life opportunities of their own and of their families in particular. We identify under-use of welfare benefits as well as of active measures which might improve the standard of living and human capital of those who are disadvantaged. A part of the disadvantaged remains active on the labor market and perceives work incentives, on the other hand we identify the poverty traps which emerge for the other fraction of those who become discouraged and welfare dependent.

Economic disparities in middle childhood development: Does income matter?

A large literature has documented the influence of family economic resources on child development, yet income's effects in middle childhood have been understudied. Using data from the National Longitudinal Survey of Youth (N = 3,551), the author examined the influence of family income in early and middle childhood on academic skills and behavior problems during middle childhood. Early childhood income had enduring effects on children's behavior problems and academic skills in middle childhood. Middle childhood income did not influence academic skills but did affect the development of behavior problems during middle childhood. Children from low-income households were particularly sensitive to the effects of family income. The quality of home environment during early and middle childhood explained a portion of the effects of income on academic skills and behavior problems.

Relationship between Income and Emergence of Democracy Reexamined, 1820-2000: A Non-Parametric Approach

The paper contrasts Lipset's modernization hypothesis and Przeworski-Limongi hypothesis that entries into democracy are random with respect to income. We use data on income and democracy going back to 1820, multiple definitions of democracy, and non-parametric testing focusing on the distribution of entrants' incomes. We find that income matters for entry into higher levels of democracy; but if we control for the previously achieved level of democracy, the income effect vanishes. This means that countries that enter into higher levels of democracy are not a random draw from the universe of all country incomes but are a random draw from the joint distribution of previous level of democracy and income. These results are compatible with the presence of a subgroup of (low) income and (low) democracy countries from which recruitment into democracy is seldom made. But for other countries, accession to higher levels of democracy is income-random. Income seems therefore both to matter (probably explaining why poor countries cannot improve their democracy levels) and not matter (explaining why for other countries improvements in democracy are income-random).

Educational Attainment and Family Background

AbstractThis paper analyses the effect of aspects of family background, such as family income and parental education, on the educational attainment of persons born from 1967 to 1972. Family income is measured at different periods of a child’s life to separate long-term versus short-term effects of family income on educational choices.We find that permanent income matters to a certain degree, and that family income when the child is 0-6 years old is an important explanatory variable for educational attainment later in a child’s life. We find that short-term credit constraints have only a small effect on educational attainment. Long-term factors, such as permanent family income and parental education, are much more important for educational attainment than are short-term credit constraints. Public interventions to alleviate the effects of family background should thus also be targeted at a child’s early years, the shaping period for the cognitive and non-cognitive skills important later in life.

Anthropometric failure and persistence of poverty in rural India

Recent studies have drawn attention to the high prevalence of stunting among children in rural India. In fact, these estimates point to more pervasive deprivation than conventional measures of poverty based on income or consumption expenditure shortfalls imply. Since stunting reflects cumulative nutritional and health deprivation, it is likely to persist despite higher incomes. With a view to shedding some new light on this issue, an analysis of the determinants of stunting is carried out, based on a recent all‐India survey of rural households. While income matters, other factors acting independently of it matter too. These include household size, whether household head is male, caste affiliation, mother’s age at marriage, mother’s age, age composition of children, male–female wage differences, hygiene and sanitation facilities, and prices of food items. So, while higher incomes will help mitigate stunting, careful attention must also be given to enhancing women’s autonomy through more remunerative employment opportunities for them, enabling households to improve hygiene and sanitation facilities, and facilitating more competitive local markets for food.

The Impact of Parental Income and Education on the Schooling of Their Children

This paper addresses the intergeneration transmission of education and investigates the extent to which early school leaving (at age 16) may be due to variations in permanent income, parental education levels, and shocks to income at this age. Least squares estimation reveals conventional results - stronger effects of maternal education than paternal, and stronger effects on sons than daughters. We find that the education effects remain significant even when household income is included. Moreover, decomposing the income when the child is 16 between a permanent component and shocks to income at age 16 only the latter is significant. It would appear that education is an important input even when we control for permanent income but that credit constraints at age 16 are also influential. However, when we use instrumental variable methods to simultaneously account for the endogeneity of parental education and paternal income, we find that the strong effects of parental education become insignificant and permanent income matters much more, while the effects of shocks to household income at 16 remain important. A similar pattern of results are reflected in the main measure of scholastic achievement at age 16. These findings have important implications for the design of policies aimed at encouraging pupils to remain in school longer.