Significant Income Effects Research Articles

Linking Binge Drinking, Depression to SES? An age old question with fresh eyes

ObjectiveOur primary goal is to move towards establishing a causal linkbetween binge drinking, mental health, employment and income.IntroductionOne of the key questions in health economics is what is thedirection of causality: does poverty cause poor health outcomes; doeslow education cause poor health outcomes; does poor health resultin lack of productivity; does poor health cause poor educational andincome outcomes; and how is this all related to mental health if at all.We are used to breaking down data into fragments as researchers:an investigator who is predominantly focused on health outcomeswill approach the problem with disease as the dependent variable andincome as the conditioning variable. However, if we are interested inincome inequality we will reverse the direction and income will bethe dependent variable with health status as the conditioning variable.The representation above allows us to visualize data as a functionof multiple fragments. For example if we want to understand howdepression is related to income, one can look at the figure to observethat with lower income there is a higher likelihood of being depressed.With this simple illustration we can see that establishing causal linkscan be very tricky, if not incredibly challenging.MethodsTwo methods are: applied descriptive analysis and estimation.We approach this without causality in mind, but with an intentionto explore how behavior responds to income, education, labor andhealth. Our descriptive approach looks at trends in binge drinking andmental health as it affects key economic outcomes such as education,employment, and income. For each outcome we then run a simpleprobit model controlling for a variety of characteristics. The keyco-variates in these models are income, employment and health.It is very useful to look at these simple probits because often itis hard to separate the effects of income on health, employment onincome, health on employment, education on employment, health andincome, and finally income, employment, health and education onmental health and substance abuse.ResultsOur estimated results are rather interesting. Examining themarginal probits, e.g. figures 1.3, and 1.5, we show that there isn’ta significant income effect, nor do we find significant education oremployment effects associated with binge drinking. In fact we findthat in Wisconsin binge drinking is a health burden for those whoare eligible to drink irrespective of education and that the effect issignificant; we also find that higher levels of education increase theprobability of being unemployed but not significantly. The secondset of probit estimates, e.g. figure 1.7, show that poor health is indeedassociated with outcomes lower employment as compared to othergroups, and higher probability of depression. The last set of probits,e.g. figure 1.1, show that retired, self employed and employed areless likely to be depressed but not significantly so, and those who areunable to work have a higher estimated probablilty to be depressed.Income doesn’t appear to have a significant estimated effect ondepression.ConclusionsOur analysis provide insights into the question of socio-economicstatus (SES), binge drinking, and depression in three important ways.First, we explore the relationship between SES and binge drinkingand we find that binge drinking is SES invariant. Second we findthat depression is not associated with income it does have a strongrelationship with employment status. We are in the process ofunpacking the effects of SES, binge drinking and depression to movebeyond associational inferences to causal inferences.

Unpacking the parallel effects of parental alcohol misuse and low income on risk of supervisory neglect

Although low income status and parent alcohol misuse are considered critical risk factors for child neglect, little is known about the mechanisms of this association. No known research has assessed the parallel effect of each on occurrence of child neglect. This study aimed to explore the direct and indirect effects of parent alcohol misuse and low family income on risk of supervisory neglect through mediating factors such as parent depressive symptoms and low social support.The study used a sample of 2990 parents of children under 13 years old who completed a listed telephone survey conducted in 50 mid-sized cities within California during 2009. We used a structural equation model to estimate the direct and indirect effects of parent alcohol misuse (defined as heavy drinking frequency) and low family income on supervisory neglect toward a focal child, as well as the indirect effect via parental depressive symptoms and low social support. Mediation analysis to capture direct, indirect, and total effects of these two independent variables was also conducted.Results revealed a significant direct effect of low family income on likelihood of supervisory neglect. Low income also exhibited an indirect effect via increased depressive symptoms and low social support. Annual frequency of heavy drinking showed no direct effect on supervisory neglect likelihood, but an indirect effect was observed via increased depressive symptoms and decreased social support. Parent low income and high frequency heavy drinking likely increase risks for supervisory neglect through distinct pathways. Longitudinal research is needed to confirm the pathways identified within this study.

Risk sharing and real exchange rates: The role of non-tradable sector and trend shocks

In this paper, we show that the tradable and non-tradable total factor productivity (TFP) processes of the US and Europe have unit roots and can be modeled by a vector error correction model (VECM). Then, we develop a standard two-country and two-good (tradable and non-tradable) DSGE model. Our model implies that using cointegrated TFP processes and including non-tradables help solve the real exchange rate (RER) volatility and risk sharing puzzles. Cointegrated TFP shocks, or trend shocks, generate significant income effects and amplify the mechanisms that produce high RER volatility. Moreover, trend shocks can break the tight link between relative consumption and RER for low and high values of trade elasticity parameters. The non-tradable sector in the model improves the results for the risk sharing significantly.

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

Does Financial Literacy Moderate the Relationship among Demographic Characteristics and Financial Risk Tolerance? Evidence from Egypt

Financial risk tolerance is certainly an important topic for researchers, investors and personal financial planners or consultants. This study purposed to investigate the effect of demographic characteristics on financial risk tolerance among Egyptians. A literature review of demographic determinants of financial risk tolerance showed dialectical results. Therefore, this study attempts to clarify the debatable issues in these results by studying the moderating role of financial literacy in relationships among demographic characteristics and financial risk tolerance. The study sample included 386 respondents representing different segments of Egyptian people. Using the hierarchical regression analysis, the results demonstrated that there were significant effects of gender, age, educational level and annual income on financial risk tolerance. Moreover, the financial literacy moderates the relationships among demographic characteristics of individuals and their tendency to take a risk.

Incorporating Neighbourhood Choice in a Model of Neighbourhood Effects on Income

Studies of neighbourhood effects often attempt to identify causal effects of neighbourhood characteristics on individual outcomes, such as income, education, employment, and health. However, selection looms large in this line of research and it has been repeatedly argued that estimates of neighbourhood effects are biased as people non-randomly select into neighbourhoods based on their preferences, income, and the availability of alternative housing. We propose a two-step framework to help disentangle selection processes in the relationship between neighbourhood deprivation and earnings. We first model neighbourhood selection using a discrete choice framework and derive correction components to adjust parameter estimates in a subsequent neighbourhood effects model for the unequal probability that an individual 'chooses' to live in a particular area. Applying this technique to administrative data from the Netherlands, we find significant interactions between personal and neighbourhood characteristics in the selection model. This confirms individual differences in neighbourhood preferences; individuals non-randomly select into neighbourhoods. The baseline neighbourhood effects model reveals a significant effect of average neighbourhood income on individual income. When we include correction components for the differential sorting of individuals into specific neighbourhoods, the effect of neighbourhood income diminishes, but remains significant. These results suggest that researchers need to be attuned to the role of selection bias when assessing the role of neighbourhood effects on individual outcomes. Perhaps more importantly, the strong, persistent effect of neighbourhood deprivation on subsequent earnings suggests that neighbourhood effects reflect more than the shared characteristics of neighbourhood residents; place of residence partially determines economic well-being.

The Power of Percentage: Quantitative Framing of Pension Income

We investigate whether the quantitative frame used to communicate future pension income to plan members matters for perceived pension income adequacy. We allocate plan members randomly to one of four pension income framing conditions: annual pension income, monthly pension income, pension income as percentage of current income, pension income as decimal of current income. We find that expressing projected pension income as a percentage (decimal) of current income significantly increases (decreases) the probability that a plan member perceives the pension income as too low. This effect is robust to adding retirement savings attitude. In addition, we find significant and intuitive effects of household wealth, income, age and education on perceived pension income adequacy. We discuss our findings against the backdrop of previous studies on the effect of numeric frames on perceptions, provide suggestions for further research and draw conclusions for pension communication and survey design.

Household income and satisfaction with life: cognitive – emotional impact paradox

Much of the discussion over satisfaction with life has focused on the significance of income. Some researchers argue that cognitive factors (expectations, social comparisons, life evaluations, schemas) is the mediating part between income and subjective wellbeing, however, positive psychology suggests that happiness determines the effect of social comparison itself. This paradox could be titled “cognitive - emotional impact paradox†. We have chosen to explore this paradox and investigate the relationship between household income, cognitions, emotions, and satisfaction with life in Lithuania, as various studies, including “World Value Survey†, indicate Lithuania is among the countries demonstrating very low scores on happiness of population even though its’ economy grew fast when this country regained its’ independence in 1991. This paper presents some results of the survey which was conducted in 2016 (representative sample, n=1001). The analysis of data has demonstrated that when people get low household income per month, they report more intense negative emotions and less positive emotions. Secondly, our results suggest that people getting low household income per month express more negative cognitions and less positive cognitions. Thirdly, the results demonstrated strong relationship between cognitions, emotions, and satisfaction with life. Moreover, the results contribute to the empirical literature on “income – happiness†relation by demonstrating that household income has no significant direct effect on satisfaction with life, but there is a significant effect of household income on basic cognitions, which have a significant effect on emotions. Subsequently, basic cognitions and emotions have an effect on satisfaction with life. However, “cognitive – emotional impact paradox†needs further exploration.

Nacimientos fuera del matrimonio en la historia de Chile: Algunos hechos estilizados

espanolEste trabajo identifica y examina una serie de hechos estilizados en la evolucion historica de la tasa de ilegitimidad en Chile, considerando datos agregados desde 1848 hasta el presente, asi como datos a nivel departamental para el periodo 1862-1948. Los resultados mas sustantivos apuntan a que las tasas de ilegitimidad y de matrimonios son fenomenos que cambian frente a transformaciones en la estructura economica y social existente y a los incentivos que ello genera en el comportamiento de los agentes. En particular, los resultados sugieren que el fuerte aumento de la tasa de ilegitimidad entre 1880 y 1920 probablemente va asociado a un intenso proceso de urbanizacion y de movimientos desde el campo (y de la agricultura) a la ciudad. Este gran aumento en la tasa de ilegitimidad del periodo mencionado no se compensa con los efectos de ingreso hasta la decada de 1920. La contracara de este fenomeno es la tasa de matrimonios por poblacion, en la que encontramos que existe una correlacion robusta con la razon de hombres a mujeres y con medidas de desarrollo economico, en que a mas desarrollo hay mas posibilidades de formalizar la relacion de pareja en un matrimonio EnglishThis paper presents a series of stylized facts about the historical evolution of the rate of illegitimacy in Chile, looking both at aggregate data from 1848 to the present and at department-level data for the 1862-1948 period. The main results suggest that the rate of illegitimacy and marriage are phenomena that change depending on the economic and social structure and the incentives present in different periods rather than being predetermined structural and historical situations. In particular, our results suggest that the sharp increase in the rate of illegitimacy in the period between 1880 and 1920 probably is correlated with urbanization and migration to cities (and agriculture from other sectors). This is not compensated by significant income effects until the early 1920s. In parallel, the ratio of marriages to the total population is also strongly correlated with the sex-ratio and with proxies of economic activity

Affluence and Breast Cancer.

High income, high socioeconomic status, and affluence increase breast cancer incidence. Socioeconomic status in USA breast cancer studies has been assessed by block-group socioeconomic measures. A block group is a portion of a census tract with boundaries that segregate, as far as possible, socioeconomic groups. In this study, we used US Census income data instead of block groups to gauge socioeconomic status of breast cancer patients in relationship with incidence, prognostic markers, and survival. US state breast cancer incidence and mortality data are from the U.S. Cancer Statistics Working Group, United States Cancer Statistics: 1999-2011. Three-Year-Average Median Household Income by State, 2010 to 2012, is from the U.S. Census Bureau, Current Population Survey, 2011 to 2013 Annual Social and Economic Supplements. County incomes are from the 2005-2009 American Community Survey of the U.S. Census Bureau. The American Community Survey is an ongoing statistical survey that samples a small percentage of the population yearly. Its purpose is to provide communities the information they need to plan investments and services. Breast cancer county incidence and survival data are from the National Cancer Institute's Surveillance, Epidemiology and End Results Program (SEER) data base. We analyzed SEER data from 198 counties in California, Connecticut, Georgia, Hawaii, Iowa, New Mexico, Utah, and Washington. SEER uses the Collaborative Stage (CS) Data Collection System. We have retained the SEER CS variables. There was a significant relationship of income with breast cancer incidence in 50 USA states and the District of Columbia in White women (r = 0.623, p < 0.001). There was a significant relationship between node involvement and income in Whites in 198 USA counties. Income was significantly correlated with 5-year relative survival in Whites with localized breast cancer. Income was not correlated with 5-year survival of Black race (p = 0.364) or other races (p = 0.624). The multivariate general linear model with income as covariate, 5-year survival by race as a dependent variable, showed a significant effect of income and White race on 5-year survival (p < 0.001), unrelated to Black race (p = 0.780) or other races (p = 0.618). In men, we found a nonsignificant positive correlation between county breast cancer incidence and income (r = 0.098, p = 0.168). Breast cancer risk factors, such as delayed childbirth, less breast-feeding, and use of hormone supplements, are more common in affluent women. Affluent women are more likely to have mammograms, which detect many cancers that might not otherwise be diagnosed. In addition, women in certain affluent ethnic groups-Ashkenazi Jews, Icelanders and the Dutch-are more likely to carry genetic mutations known to predispose to breast cancer. We hypothesize that women with more income can afford better cancer care and survive longer than poorer women. But our hypothesis does not explain why this effect should be limited to White women; or why node involvement increased with income in White women but not in Blacks or Hispanics. Further studies may be worthwhile.

Preparations for Old Age and Well-Being in Later Life in Thailand: Gender Matters?

Data from the 2011 Survey of Older Persons in Thailand examines the association between preparations for old age (financial, health, caregiving, living arrangements, and spiritual) and three measures of well-being: financial satisfaction, life satisfaction, and physical health. The study further explores the role of social stratification and the gendered nature of these relationships. The sample ( N = 10,235) is restricted to adults 60 years and above, who are retired and answered the survey independently. Multivariate logistic regression analyses indicate that different forms of preparation are positively associated with post-retirement well-being for men and women but socioeconomic resources are positively associated with all three well-being outcomes. Furthermore, for women, there are significant negative interaction effects of income and financial preparation on life satisfaction, as well as negative interaction effects of disability and caregiver preparation on self-rated health. Implications for long-term care, socioeconomic inequality, and gender inequality in paid labor are discussed.

Long-term Impacts of Global Food Crisis on Production Decisions: Evidence from Farm Investments in Indonesia

ABSTRACTThis paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments.

Significant effect of education & income on cancer control: Policy consideration for third world

BackgroundHead and neck squamous cell cancer (HNSCC) is maximally encountered in India across the globe, and the environmental influences/interactions leading to cancer particularly education and income are very different in the developed countries than the third world. Material and methodsA prospective assessment of 707 histologically proven HNSCC patients was undertaken regarding the possible role of 2 determinants viz. education and income on cancer prevalence. Standard questionnaires were filled up for the outpatients in the department of otolaryngology and variables such as demographics, site of involvement, the education and family income were analyzed accordingly. ObservationsThe cancer was seen more among those with the education status of less than grade V (58%), than between VI and VIII grade (21%) or between IX and XII grade (8.5%) and higher. Of those with the education category of less that grade V, oral cavity was the most common site involved (29%). The cancer rates among income category of less than Rs. 1000/- (46%) was significantly more than those of Rs. 1001–2000 (29%) and Rs. 2001–4000 (10%). Thereafter there was a drastic fall in the cancer rates among the further higher income categories. ConclusionsTwo points have emerged from this study; that is likely to have the highest impact on cancer control: (1) implementing compulsory education till class VI and (2) Enhancing family income to Rs. 4000/INR per month. These are likely to have a complicated interaction with various procarcinogenic practices and environment and their correction is very likely to reduce the cancer occurrence through prevention.

The effect of the financial crisis in Greece on the health habits of young adults

BackgroundPeriods of financial crisis have been strongly associated with changes in the health habits of affected individuals. Previous research suggests that these periods usually affect drinking, smoking, physical activity and eating habits, thus affecting our psychophysical health as well.AimTo investigate the effect of the financial crisis in Greece on the health habits of young adults.MethodTwo hundred and seven Greek young adults participated in the study, 75 (36.2%) males and 132 (63.8%) females, with a mean age of 29. Analysis of data was conducted with Anova, Ancova, regression and correlation analyses, using the SPSS software.ResultsThe findings showed a significant effect of the financial crisis on drinking patterns (F(1.173) = 4.488, P = 0.036). Individuals whose income was reduced consumed less alcohol (M = 11.646, SD = 1.434) compared to individuals who had not experienced such a reduction (M = 17.957, SD = 2.611). There was a significant effect of annual income on BMI (F(4.10) = 3.74, P = 00.01, ηp2 = 0.96), after controlling for the effect of exercise intensity (F(1.10) = 4.58, P = 0.034, ηp2 = 0.31). However, the financial crisis did not significantly affect exercise, smoking behaviour or eating habits (P &gt; 0.05). Significant correlations between tobacco use and drinking were found (r(206) = 0.22, P &lt; 0.001). A significant correlation was also found between exercise and the consumption of fruits and vegetables (r(174) = 0.26, P &lt; 0.001).ConclusionThe financial crisis reduced alcohol consumption whilst it did not affect physical activity, smoking or eating habits. These findings allow us to propose that, despite the bleak reality of a period of financial crisis, such periods could actually lead to the reduction of unhealthy behaviours.Disclosure of interestThe authors have not supplied their declaration of competing interest.

Economic Origins of Dietary Diseases: Is Obesity becoming a Middle Income Problem?

Obesity resembles a typical negative economic externality to the public health system. Previous literature identifies a positive connection between national income levels and incidence of obesity. Due to changes in globalization of food culture and media, food habits are spreading rapidly over the country borders from high into middle income countries. Due to these developments, association of obesity with high income is questionable. We pursue this research question using cross-country data from 2013 by modeling obesity-related dietary health outcomes in terms of linear and nonlinear income effects. Additional control variables include within-country income inequality and region fixed effects. Departing from the linear trends in the literature, the model results show statistically significant nonlinear effects of income. However, these effects are small in magnitude.

Determinants of Fertility in the Long Run

This study investigates the determinants of fertility in the long run, using a newly constructed panel data set consisting of fertility rates, measured as crude birth rates, infant mortality rates, per-capita income, and the educational attainment of men and women for 43 countries from 1890 to 2010 at five-year intervals. The regression results show the significant effects of per-capita income, infant mortality, educational attainment, and political development on fertility rates. A woman’s educational attainment at the primary and secondary levels has a pronounced negative effect on fertility rates. On the contrary, an increase in a woman’s tertiary educational attainment, with the level of a man’s remaining constant, tends to raise fertility rates, indicating that highly educated women can have a better environment for childbearing and childrearing in a society with greater gender equality. The presented research thus identifies the important role of human capital accumulation, especially attained by women, in demographic transition through fertility decisions for over a century of human history.

Does Economic Prosperity Breed Trust?

We explore whether national economic prosperity enhances mutual generalized trust. This is done using panel data of multiple waves of the World Values Surveys, whereby national income levels are instrumented for using exogenous oil price shocks. We find significant and substantial effects of national income on the level of trust in the economy. In particular, a one percent increase in national income tends to cause an average increase of one percentage point (or more) in the likelihood that a person becomes trustful. One possible rationalization for this, exhibited in a simple model, is that perceived prosperity signals that many people are trustworthy.

The effect of universal child benefits on labour supply

AbstractUsing a difference‐in‐differences estimator, I find the Canadian Universal Child Care Benefit has significant negative income effects on the labour supply of married individuals. The likelihood of lower‐educated mothers to participate in the labour force is reduced 3.2 percentage points when receiving the benefit. Median hours worked per week among lower‐educated mothers is reduced by 1.9 hours. The effects on higher‐educated mothers are substantial, with median hours worked among higher‐educated mothers reduced by nearly one hour per week. For men, the evidence suggests small but significant income effects on labour supply, consistent with the literature on labour supply elasticities.

The Great Recession and Private Label Demand

We seek to determine how wealth and income influence the demand for private label (hereafter PL) products. In particular, we use the experience of the recent Great Recession to explore how larges changes in wealth and income affect the demand for private label products. Contrary to recent claims that the recession has sparked a sharp increase in Private Label demand, we find a long-term trend toward increasing acceptance of PL products that predates the Great Recession. There is little evidence that the Great Recession has changed the long-term trend. We link our panel data to store level data and establish that the PL trend is demand-based and does not stem from supply side factors such as pricing and availability. We exploit local variation in changes in housing values to estimate a wealth effect on private label demand. To estimate an income effect, we exploit variation in income across time for our panelists, controlling for local economic trends. We estimate significant but small wealth and income effects on Private Label demand. This contrasts sharply with the strong cross-sectional relationships between demographic variables and PL share we establish. We believe these cross-sectional relationships reflect the cumulative experiences of consumers with PL products as well as the impact of education on perceptions of PL quality. We show evidence that the strength of these relationships is deteriorating over time which is consistent with an experienced-based view of PL quality perceptions.

Income and employment effects of shale gas extraction windfalls: Evidence from the Marcellus region

New technologies combining hydraulic fracturing and horizontal drilling in oil and gas extraction are creating a sudden expansion of production. Residents of places where deep underground oil and gas deposits are found want to know about the broader economic, social, and environmental impacts of these activities that generate windfall income for some residents. We first review the literature on windfall spending patterns. Then, using the Marcellus region, the earliest area to be tapped using the new techniques, we estimate county-level employment and income effects. For robustness, we employ two methods. Using a propensity score matching approach we find no effect of fracking on income or employment. A panel-fixed effect regression approach suggests statistically significant employment effects in six out of seven alternative specifications, but significant income effects in only one out of seven specifications. In short, the income spillover effects in the Marcellus region appear to be minimal, meaning there's little incentive at the county level to incur current or potential future costs that may be associated with this activity. We conclude with some ideas on how localities might employ policies that would allow natural gas extraction to move forward, benefitting landowners, while establishing some financial safeguards for the broader community.