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Several themes which are common to both econometrics and psychometrics are surveyed. The themes are illustrated by reference to permanent income hypotheses, simultaneous equation models, adaptive expectations and partial adjustment schemes, and by reference to test score theory, factor analysis, and time-series models.
Households are frequently subject to income and asset shocks. We performed a lab experiment, inducing losses on a real effort task, after which we measured cognitive performance, loss aversion and cheating behavior. We found that asset losses, but not income losses, act as a cognitive load, by decreasing accuracy and increasing response times. We did not detect any change in dishonesty or loss aversion.
Despite growing awareness of the mental health damage caused by air pollution, the epidemiologic evidence on impact of air pollutants on major mental disorders (MDs) remains limited. We aim to explore the impact of various air pollutants on the risk of major MD.
Methods
This prospective study analyzed data from 170 369 participants without depression, anxiety, bipolar disorder, and schizophrenia at baseline. The concentrations of particulate matter with aerodynamic diameter ≤ 2.5 μm (PM2.5), particulate matter with aerodynamic diameter > 2.5 μm, and ≤ 10 μm (PM2.5–10), nitrogen dioxide (NO2), and nitric oxide (NO) were estimated using land-use regression models. The association between air pollutants and incident MD was investigated by Cox proportional hazard model.
Results
During a median follow-up of 10.6 years, 9 004 participants developed MD. Exposure to air pollution in the highest quartile significantly increased the risk of MD compared with the lowest quartile: PM2.5 (hazard ratio [HR]: 1.16, 95% CI: 1.09–1.23), NO2 (HR: 1.12, 95% CI: 1.05–1.19), and NO (HR: 1.10, 95% CI: 1.03–1.17). Subgroup analysis showed that participants with lower income were more likely to experience MD when exposed to air pollution. We also observed joint effects of socioeconomic status or genetic risk with air pollution on the MD risk. For instance, the HR of individuals with the highest genetic risk and highest quartiles of PM2.5 was 1.63 (95% CI: 1.46–1.81) compared to those with the lowest genetic risk and lowest quartiles of PM2.5.
Conclusions
Our findings highlight the importance of air pollution control in alleviating the burden of MD.
The chapter examines the relationship between the size and diversity of the expellee population and entrepreneurship and occupational change in West Germany. Using statistical data at the municipal and county levels, it documents a reversal of fortune: although expellee presence presented economic challenges in the immediate postwar period, in the long run, it increased entrepreneurship rates, education, and household incomes. The more regionally diverse the expellee population, the better the long-run economic performance in receiving communities.
The chapter examines how the size and diversity of the migrant population shaped economic outcomes in western Poland using statistical analysis. It shows that when state institutions were extractive, the composition of the migrant population played no role in shaping economic performance. Once institutions became more inclusive, however, municipalities settled by more regionally diverse populations registered higher incomes and entrepreneurship rates. The chapter then rules out a series of alternative explanations for these findings.
In Africa, rangeland ecosystems have been exploited due to heavy and unsustainable grazing. Policy and institutional mechanisms such as integrating silvopastoral systems with sustainable grazing practices have been devised to mitigate the negative effects. In this study, we investigated whether the uptake of sustainable grazing management in the form of controlled grazing spurs investment in multipurpose trees (MPTs) and enhances income. Using instrumental variable regression, we find that controlled grazing increases not only the propensity to plant MPTs but also the number of tree species. More importantly, IV and treatment effect results indicate that controlled grazing enhances income from MPTs.
This section thinks about the relationship between compositional creativity, labour, and money. It outlines how artistic freedom and agency have often been inversely related to stable income, and suggests some ways that composers today might navigate these elements in order to monetise their work.
We start by introducing the key ingredients in macroeconomic modelling: investment, production, income and consumption, and explain the corresponding equilibrium conditions. Modelling these quantities in discrete time, we describe the multiplier-accelerator model, a classic model of macroeconomic dynamics, and an example of a second-order recurrence equation. We then embark on describing how to solve linear constant-coefficient second-order recurrence equations in general. The general solution is the sum of the solution of a corresponding homogeneous equation and a particular solution. There is a general method for determining the solution of the homogeneous equation, involving the solution of a corresponding quadratic equation known as the auxiliary equation.
To estimate the effect of income change on difficulty accessing food since the COVID-19 pandemic for South African youth and evaluate whether this effect was modified by receiving social grants.
Design:
A cross-sectional, online survey was conducted between December 2021 and May 2022. Primary outcome was increased difficulty accessing food since the COVID-19 pandemic. Income change was categorised as ‘Decreased a lot’, ‘Decreased slightly’ and ‘Unchanged or increased’. Multivariable logistic regressions were used, with an interaction term between social grant receipt and income change.
Setting:
eThekwini district, South Africa.
Participants:
Youth aged 16–24 years.
Results:
Among 1,620 participants, median age was 22 years (IQR 19–24); 861 (53 %) were women; 476 (29 %) reported increased difficulty accessing food; 297 (18 %) reported that income decreased a lot, of whom 149 (50 %) did not receive social grants. Experiencing a large income decrease was highly associated with increased difficulty accessing food during the COVID-19 pandemic (adjusted OR [aOR] 3·63, 95 % CI 2·70, 4·88). The aOR for the effect of a large income decrease on difficulty accessing food, compared to no income change, were 1·49 (95 % CI 0·98, 2·28) among participants receiving social grants, and 6·63 (95 % CI 4·39, 9·99) among participants not receiving social grants.
Conclusions:
While social grant support made a great difference in lowering the effect of income decrease on difficulty accessing food, it was insufficient to fully protect youth from those difficulties. In post-pandemic recovery efforts, there is a critical need to support youth through economic empowerment programming and food schemes.
There is extensive evidence that the COVID-19 pandemic has mostly affected the less well-off in society, boosting economic inequality. In contrast, little is known about how much such rising economic disparities affected the involvement of individuals in politics, thereby enhancing political inequality. Extending the research on political inequality to a key and somewhat neglected dimension of citizens’ involvement with politics - political engagement - this article claims that the COVID-19 depressed engagement and promoted political inequality. The analysis relies on a comparative European approach and on data before and after the emergence of the pandemic. Besides generally finding an overall socioeconomic gap with regard to political engagement, results also suggest that the pandemic somewhat lessened engagement, increasing the gap between the more and less socioeconomically advantaged. Generally, this is not strictly due to a tendency to decrease engagement among the latter but also to increase engagement among the former.
Smiths analysis of the relationship between division of labour and the wealth of nations interpreted as per capita income is illustrated, through their connection with productivity. The division of labour also explains the existence and characteristics of social stratification and alienation. The classical tripartition in social classes – capitalists, landlords and workers – is discussed, considering both its explanatory value and its limits. Division of labour evolves through time: Babbages laws, Taylorism, the production chain, mechanization. The international division of labour and international value chains are considered. Marxs communist utopia with the disappearance of compulsory labour is recalled and confronted with less unrealistic utopias concerning the command structure within the firm or Ernesto Rossis labour army.
The introduction of the 2012 Labour Code is considered ‘groundbreaking’ in industrial relations in Vietnam. However, knowledge about the effects of this law is still minimal. This study provides the first evidence of the impacts of the law on worker outcomes, disaggregated by location and migration status. The Vietnam Labour Force Survey is used as the primary dataset. Both difference-in-differences and fixed-effect models are applied in the investigation. The estimated results show a relationship between the introduction of the law and the labour supply of contracted workers in urban areas, especially long-term migrant workers. Furthermore, income for these long-term migrant contract workers was affected significantly by the introduction of the law. A link between the law and health insurance participation was also found among non-migrant contracted workers in urban areas. We also perform estimations using a short panel sample and find notable results. The study likewise reveals disadvantages of rural workers compared to urban workers in terms of earnings, and of short-term migrants compared to other workers, in terms of labour supply.
We provide an introduction to the world economy. World population levels have risen drastically since 1800, in conjunction with (per capita) income levels. Economic leadership regularly shifts from one country to another. Rich countries are usually well connected in terms of international trade, contacts, investments, migration and capital flows. Historians have identified two big ‘waves’ of economic globalisation: at the end of the nineteenth century and after World War II. These episodes show decreases in international price gaps and increases in relative international trade- and capital flows. The ‘fragmentation’ process, in which different parts of goods are provided in different nations before they are combined in final goods, is a relatively new phenomenon. The most recent wave of globalisation is slowing down at the moment (slowbalisation), but it remains to be seen how much the backlash against globalisation will affect trade- and cross-border investment in the years to come.
The GINI project investigates the dynamics of inequality among populations over the long term by synthesising global archaeological housing data. This project brings archaeologists together from around the world to assess hypotheses concerning the causes and consequences of inequality that are of relevance to contemporary societies globally.
In many countries, urban areas are commonly contaminated with canine feces that spread parasites, a situation related to the natural and social environment. Dogs having free access to public areas therefore constitutes a health risk. Because in Patagonia there are no records of city comparisons that consider the number of free-roaming dogs and the local environmental and socioeconomic characteristics, in this study we analyse and compare canine parasitoses in two cities of Rio Negro province, Argentina. Canine feces were collected from public areas of El Bolsón and Cipolletti cities and examined using enrichment methods, Kinyoun stain and immunoassay (Copro-Elisa). The total percentage of positive feces in El Bolsón was 68.95% and 16 parasite taxa being identified, whereas in Cipolletti the total positive feces was 41.1%, with 11 taxa. Both cities presented more helminth species than protozoans. The variables that explained the occurrence of all parasites were rainfall and socioeconomic stratum with the highest values being found in low-income areas.
Soil moisture is conditioned by rainfall. This study highlights the presence of the zoonotic Echinococcus sp. in dogs in urban areas of the Rio Negro province. The occurrence of this parasite in Cipolletti is unexpected, given that this city is not considered an endemic zone for this disease, which is not included in local monitoring and control plans.
Studies of health care expenditure often exclude explanatory variables measuring wealth, despite the intuitive importance and policy relevance. We use the Household, Income and Labour Dynamics in Australia Survey to assess impacts of income and wealth on health expenditure. We investigate four different dependent variables related to health expenditure and use three main methodological approaches. These approaches include a first difference model and introduction of a lagged dependent variable into a cross-sectional context. The key findings include that wealth tends to be more important than income in identifying variation in health expenditure. This applies for health variables which are not directly linked to means testing, such as spending on health practitioners and for being unable to afford required medical treatment. In contrast, the paper includes no evidence of different impacts of income and wealth on spending on medicines, prescriptions or pharmaceuticals. The results motivate two novel policy innovations. One is the introduction of an asset test for determining rebate eligibility for private health insurance. The second is greater focus on asset testing, rather than income tests, for a wide range of general welfare payments that can be used for health expenditure. Australia's world-leading use of means testing can provide a test case for many countries.
We explored long-term employment status and income before and after depression diagnosis among men and women and at different working ages in Taiwan.
Methods
Data from 2006 to 2019 were obtained from the National Health Insurance Research Database (NHIRD). Individuals with newly diagnosed depressive disorder aged 15 to 64 years during the study period were identified. An equal number of individuals without depression were matched for their demographic and clinical characteristics. Employment outcomes included employment status, which was categorized into employed or unemployed, and annual income. Based on the occupation categories and monthly insurance salary recorded in the Registry for Beneficiaries of the NHIRD, a subject was defined as unemployed if he or she differed from the income earner or the occupation category was unemployed. Monthly income was defined as zero for unemployed subjects and proxied as monthly insurance salary for others. Annual income was the sum of monthly income in each observation year.
Results
A total of 420,935 individuals with depressive disorder were included in the study, and an equal number of individuals with not diagnosed depression served as controls. Employment rate and income were lower in the depression group than in the control group before the year of diagnosis, with a difference of 5.7% in employment rate and USD 1,173 in annual income. This gap increased considerably after the year of diagnosis (7.3% in employment rate and USD 1,573 in annual incomes) and further widened in the subsequent years (8.1% in employment rate and USD 2,006 in annual incomes in the 5th following year). The drops in the employment rate and income caused by depression were more evident in men and older age groups than in women and younger age groups, respectively. However, the reduction in employment rate and income in the following years after the diagnosis was more considerable among younger age groups.
Conclusions
The effect of depression on employment status and income was significant during the year of diagnosis and continued afterwards. The effect on employment outcomes varied between genders and across all age groups.
In recent years, the psychological causes and consequences of poverty have received renewed attention from scientists and policymakers. In this essay, we summarize new developments in this literature. First, we discuss advances in our understanding of the relationship between income and psychological well-being. There is a robust positive relationship between the two, both within and across countries, and in correlational and causal analyses. Second, we summarize recent work on the impact of “scarcity” and stress on economic preferences and decision-making. Our view of this literature is that the evidence is relatively weak. Third, we summarize evidence on the impact of psychological interventions on economic outcomes. Light-touch psychological interventions, such as videos that aim to raise aspirations, have shown some promise in encouraging investment and improving economic well-being. Similarly, psychotherapy and pharmacological mental health treatments have positive effects on economic outcomes. Relative to the effects of cash transfers, these impacts are small in absolute terms and large in per-dollar terms. We conclude by discussing whether a psychological poverty trap is plausible.
Individuals with heavy paid and unpaid work burdens may experience time deprivations that restrict their well-being and put them at risk of becoming or remaining income poor. Because unpaid work outside of the market is not captured in most large survey-based datasets, time poverty is rarely recognized in policy and practice. Yet income poverty and time poverty are mutually reinforcing; they can sap energy and impede effective decision-making, thus perpetuating the state of poverty. This essay offers a five-step approach to conceptualizing and measuring time poverty and it compares time poverty rates by gender across a range of developing countries. Results show that women have higher time poverty rates than men in most cases, with the main exception being countries with low rates of female labor force participation. Policies that strengthen physical and social infrastructure, thereby decreasing the time needed for unpaid household work, have demonstrable effects on reducing time poverty.
This study examines the impact of land tenure rights on the adoption of short- and long-term agricultural practices and the impact of these practices on the income and food insecurity for rural households in Burkina Faso. The bivariate probit model and propensity score matching are used to analyze data collected from 4,398 rural households. The results show that ownership of permanent land rights only increases the likelihood of adopting long-term agricultural practices. In addition, adoption of short-term practices increases household income and reduces food insecurity, while adoption of long-term practices only increases household income.