Economics - Research Publications

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    Impact of COVID-19 shocks, precarity and mediating resources on the mental health of residents of share housing in Victoria, Australia: an analysis of data from a two-wave survey
    Raynor, K ; Panza, L ; Bentley, R (BMJ PUBLISHING GROUP, 2022-04)
    OBJECTIVES: COVID-19 lockdown measures have challenged people's mental health, especially among economically vulnerable households. The objective of this study was to investigate the impact of exposure to COVID-19 shocks (defined as job loss, living cost pressures and changing housing conditions throughout the lockdown period) and double precarity (defined as precarity in housing and employment) on mental health outcomes for members of share households as well as the mediating effects of a range of resources. DESIGN: We conducted a two-wave survey of occupants of share housing in June and October 2020 during a prolonged period of population lockdown. Research design involved fixed effects ordered logit regression models to assess the mental health consequences of baseline precarity and COVID-related shocks. SETTING: Victoria, Australia. PARTICIPANTS: We surveyed 293 occupants of share houses (mean age 34 SD 11.5, 56% female). Members of share houses (where individuals are unrelated adults and not in a romantic relationship) are more likely to be young, casually employed, visa-holders and low-income. OUTCOME MEASURES: We measured household composition, housing and employment precarity, access to government support, household crowding, social networks and COVID-19 shocks. We used a self-reported measure of mental health. RESULTS: Those exposed to COVID-19 shocks reported a 2.7 times higher odds of mental health deterioration (OR 2.7, 95% CI 1.53 to 4.85). People exposed to double precarity (precarity in both housing and employment) reported 2.4 times higher odds of mental health deterioration (OR 2.4, 95% CI 0.99 to 5.69). Housing inadequacy and lack of access to sufficient government payments explained 14.7% and 7% of the total effect of double precarity on mental health, respectively. CONCLUSIONS: Results indicate that residents of group households characterised by pre-existing precarity were vulnerable to negative mental health effects during lockdown. Access to sufficient government payments and adequate housing buffered this negative effect.
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    Always egalitarian? Australian earnings inequality 1870-1910
    Panza, L ; Williamson, JG (WILEY, 2021-07)
    Abstract We document the origins of Australia's egalitarianism by quantifying both thelevelandtrendsof earnings inequality during 1870–1910 by constructing social tables for earnings, thus overcoming the constraints imposed by the lack of income, tax and wealth data. We find that earnings inequality was much lower in Australia than in the United States and the United Kingdom in 1870 and that there was no rise in Australian earnings inequality over the half century 1870–1910, but rather a fall. We argue that such findings are driven by a faster skill supply growth relative to demand.
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    Overcoming the Egyptian cotton crisis in the interwar period: the role of irrigation, drainage, new seeds and access to credit
    Panza, L ; Karakoc, U (Wiley, 2021-02-01)
    After experiencing a period of spectacular growth during the late nineteenth century, the Egyptian cotton sector underwent a phase of stagnation, which was followed by a gradual and steady increase in output during the interwar period. Drawing on a new panel dataset at the province–year level, this article explores the determinants of the upturn in cotton output, running a horserace between credit, seed technology, and infrastructure. In order to address endogeneity concerns, an instrumental variable approach is adopted, using a modified version of Bartik's shift‐share instrumental variable. Our results provide supporting evidence that peasants switched to a lower‐yielding cotton variety as a response to changes in relative price. Moreover, our production function estimates show that two key factors had a positive impact on output growth: credit availability and the adoption of new cotton varieties.
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    The impact of ethnic segregation on schooling outcomes in Mandate Palestine
    Panza, L (Elsevier, 2020-09-01)
    This paper provides new and comprehensive evidence on the relationship between ethnic segregation and Arab and Jewish human capital formation in Mandate Palestine, the historical period in which the roots of the current reality of inter-ethnic separation were built. Using a novel panel dataset (1927–1945), I exploit geographic and time variation in the degree of segregation across Palestine to assess whether it affected schooling outcomes, observed on average for each ethnic group. The empirical findings suggest that segregation negatively affected Muslim and Christian school enrolments, while being positively associated with Jewish school provision. The negative impact of segregation on Arab schooling was primarily driven by negative income effects.
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    Living costs and living standards: Australian development 1820–1870
    Panza, L ; Williamson, JG (Oxford University Press (OUP), 2020-02-01)
    This paper contributes to the New World living standard leadership debate by comparing the Australian experience during 1820s–1870s with the USA, Latin America, and the UK. Using novel living costs data, we compute two estimates of income leadership: welfare ratios and purchasing–power–parity-adjusted GDP per capita. Australia started considerably below the UK and the USA but by the 1870s, it had overtaken the former and had almost done so for the latter, due to relatively rapid labour productivity growth and a steep decline in living costs. Still, in the 1870s Australia was not the world income leader, but a close second.