Melbourne Institute of Applied Economic and Social Research - Research Publications
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ItemNo Preview AvailableEconomic conditions and health: Local effects, national effect and local area heterogeneity(Elsevier BV, 2023-10-01)
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ItemSocial Isolation, Social Support, and Loneliness Profiles Before and After Spousal Death and the Buffering Role of Financial Resources(OXFORD UNIV PRESS INC, 2022-05-05)OBJECTIVES: We provide new evidence on the profiles of social isolation, social support, and loneliness before and after spousal death for older widows. We also examine the moderating effects of gender and financial resources on changes in social health before and after widowhood. METHODS: We use 19 waves of data from the Household, Income and Labour Dynamics in Australia Survey, including 749 widowed individuals and a comparison group of around 8,000 married individuals. We apply coarsened exact matching weights and control for age and time trends. Local polynomial smoothed plots show the profiles of social health from 3 years pre- to 3 years postspousal death. All analyses were stratified by gender. RESULTS: Spousal death was strongly associated with increased loneliness for women and men, but also an increase in interactions with friends and family not living with the bereaved. For men, financial resources (both income and asset wealth) provided some protection against loneliness. Spousal death was not associated with changes in social support or participation in community activities. DISCUSSION: We demonstrate that loneliness is a greater challenge of widowhood than social isolation or a lack of social support. Our findings suggest that interventions focusing only on increasing social interactions are unlikely to alleviate loneliness following spousal death. Moreover, policies that reduce the cost of formal social participation may have limited effectiveness in tackling loneliness, particularly for women. Alternative strategies, such as helping the bereaved form a new sense of identity and screening for loneliness around widowhood by health care workers, could be beneficial.
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ItemEuropean and Australasian Econometrics and Health Economics Workshop papers Introduction(WILEY-BLACKWELL, 2016-09)
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ItemNo Preview AvailableEconomic Aspects of Loneliness in Australia(WILEY, 2021-03)We highlight the problem of loneliness, and argue that it is not only a public health issue but also an economic problem. We provide a brief review of findings from the key literature on the associations between loneliness, mental and physical health, and healthcare costs; and then present some evidence on its trends, the extent of socioeconomic inequalities and its links with health and healthcare usage, in Australia. We hope to encourage further economics research on loneliness, and related issues of social isolation and poor social support, to aid the design of policies and interventions to reduce loneliness.
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ItemWho is resilient in a time of crisis? The importance of financial and non-financial resources(WILEY, 2021-12)Enhancing population resilience to adverse events is now a policy priority. Accordingly, there have been calls for more evidence on the determinants of resilience. We answer this call by identifying financial and non-financial resources associated with psychological resilience during the COVID-19 pandemic. Using longitudinal survey data, psychological resilience is measured by comparing distress reported pre-COVID-19 with distress reported during the outbreak and initial lockdown in April 2020. Methodologically, we compare differences in resilience and resources between people with identical gender, ethnicity, health, parenthood status, education, employment status, and region of residence (all measured pre-2020). We also provide estimates from within-household comparisons. Surprisingly, income, savings, and debt levels did not affect the likelihood of psychologically resilient outcomes. Cognitive ability, religiosity, and neighborhood social capital also had no protective effect. In contrast, we find robust evidence that non-cognitive skills, measured by self-efficacy, strongly protected against psychological distress. Self-efficacy also dampened the increase in distress caused by large earnings shocks. These findings support investments in non-cognitive skills that modify the damage-function from adverse events.
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ItemThe Optimality of Tax Transfers: What does Life Satisfaction Data Tell Us?(SPRINGER, 2012-10)This paper addresses an important policy question: who gets the largest utility gain from income and does the tax system adequately reflect this? We address this question by using Australian panel data and taking life satisfaction as a proxy for utility, allowing us to identify the marginal utility of additional income for different groups of individuals. We find that optimal transfers consist of transfers from the old to the middle aged, and from the married to the unmarried. This optimal utilitarian welfare policy is then contrasted with information on who actually receives transfers and who pays for them in Australia, where we find that taxes are too high for some groups, like the young, and that they are too low for other groups, like the elderly. We believe that the methodology developed in this paper could be fruitfully applied to the issue of optimal taxation in other countries.
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ItemThe link between health and economic preferences: Evidence from 22 OECD countries(WILEY, 2021-04)We study the link between health status and economic preferences using survey data from 22 Organisation for Economic Co-operation and Development (OECD) countries. We hypothesize that there is a relationship between poor health and the preferences that people hold, and therefore their choices and decisions. We find that individuals with a limiting health condition are more risk averse and less patient, and that this is true for physical and mental health conditions. The magnitudes of the health gap are approximately 60% and 70% of the gender gap in risk and time preferences, respectively. Importantly, the health gaps are large for males, females, young, old, school dropouts, degree holders, employed, nonemployed, rich, and poor. They also hold for countries with different levels of gross domestic product (GDP), inequality, social expenditure, and disease burden.
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ItemNo Preview AvailableMacroeconomic shocks, job security, and health evidence from the mining industry(Massachusetts Institute of Technology Press (MIT Press), 2020-06-01)How do exogenous changes in the macroeconomic environment affect workers’ perceived job security, and consequently, their mental and physical health? To answer this question, we exploit variation in world commodity prices over the period 2001–17 and analyze panel data that include detailed classifications of mining workers. We find that commodity price increases cause increases in perceived job security, which in turn, significantly and substantively improves the mental health of workers. In contrast, we find no effects on physical health. Our results imply that the estimated welfare costs of recessions are much larger when the effects of job insecurity, and not only unemployment, are considered.
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ItemInvestigating the role of neighbourhood characteristics in determining life satisfaction( 2003-09)This paper reports on an analysis of life satisfaction data collected as part of the first wave of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. More specifically, the clustered nature of the HILDA sample was used to test the role of neighbourhood effects in accounting for inter-personal differences in self-reported life satisfaction scores.A regression model predicting individual differences in life satisfaction was developed and tested for men and women separately. When this model was estimated allowing for fixed neighbourhood effects (based on the Census Collection District in which a sample member resides), strong support for sizeable effects were found. Indeed, observable individual and household characteristics (such as age, sex, employment status and household income) were only found to account for about 12 to 14 per cent of the variation in measured life satisfaction. Of the vvariance unexplained, close to 10 per cent could be accounted for by unobserved differences across neighbourhoods. While identifying the presence and magnitude of neighbourhood effects proved to be relatively straightforward, determining the source of these neighbourhood differences is a very different matter. Essentially, these neighbourhood effects can arise either because individuals in the same neighbourhood tend to behave similarly because they face similar environments or have similar characteristics, or because the behaviour of individuals is affected by the behaviour of other residents of the neighbourhood. Some evidence was uncovered to suggest that the latter type of effect might be relatively more powerful in explaining differences in life satisfaction. Unfortunately, this conclusion is tentative at best, with measurable neighbourhood characteristics only found to have a relatively small impact on the overall explanatory power of the regression models
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ItemLife satisfaction and the economic and social characteristics of neighbourhoods(SPRINGER, 2009-04)