Ill-Health as a Household Norm: Evidence from Other People's Health Problems

This paper presents evidence that an individual's self-assessed health (SAH) does not only suffer from systematic reporting bias and adaptation bias but is also biased owing to confounding social norm effects. Using 13 waves of the British Household Panel Survey, I am able to show that, while there is a negative and statistically significant correlation between SAH and individuals' own health problem index, this negative effect varies significantly with the average number of health problems per (other) family member. Consistent with Akerlof's (1980) social norm theory, the gap in SAH between individuals with and without health problems reduces as the average number of health problems for other household members increases. Under the assumption that SAH is endogenous, this finding suggests that the objective health of other household members could be a good instrument for self-assessed levels of health.Self-assessed health; subjective health; relative; norm; comparison effects; chronic illness; BHPS

Daughters and Left Wing Voting

What determines human beings' political preferences? Using nationally representative longitudinal data, we show that having daughters makes people more likely to vote for left-wing political parties. Having sons leads people to favor right-wing parties. The paper checks that our result is not an artifact of family stopping-rules, discusses the predictions from a simple economic model, and tests for possible reverse causality.Voting, gender, daughters, political preferences, attitudes.

Thinking About It: A Note on Attention and Well-Being Losses From Unemployment

This note investigates Schkade and Kahneman's (1998) maxim that "Nothing in life is quite as important as you think it is while you are thinking about it". The paper shows that whilst becoming unemployed hurts psychologically, unemployment has a greater impact on happiness if the person also regards it as an important event that took place in the last year. This finding, particularly if it is replicated for other domains, such as health and income, will have important implications for how we think about the impact of objective circumstances on well-being and about well-being more generally.Happiness, Well-being, Attention, Focusing illusion, Unemployment

Buying happiness in an unequal world: Rank of income more strongly predicts well-being in more unequal countries

Does income rank matter more for well-being in more unequal countries? Using more than 160,000 observations from 24 countries worldwide, we replicate previous studies and show that the ranked position of an individual’s income strongly predicts life evaluation and positive daily emotional experiences, while absolute and reference income generally have weak orno effects. Furthermore, we find the association between income rank and an individual’s well-being to be significantly larger in countries where income inequality, represented by the share of taxable income held by the top 1 %of income earners,is high. These results are robust to using an alternative measure of income inequality and different reference group specifications.Our findingssuggest that people in more unequal societies place greater weight on the pursuit of higher income ranks, which may contribute to enduringincome inequality in places where greater well-beingcan be bought from moving up the income ladder

The September 11 attacks and their impact on mental distress in the UK

Using a longitudinal household panel dataset in the United Kingdom, where most interviews are conducted in September each year, we are able to show that the attacks of September 11 resulted in higher levels of mental distress for those interviewed after that date in 2001 compared to those interviewed before it. This provides one of the first examples of the impact of a terrorist attack in one country on well-being in another country.Working Pape

What's the good of education on our overall quality of life?: a simultaneous equation model of education and life satisfaction for Australia

Many economists and educators favour public support for education on the premise that education improves the overall quality of life of citizens. However, little is known about the different pathways through which education shapes people's satisfaction with life overall. One reason for this is because previous studies have traditionally analysed the effect of education on life satisfaction using single-equation models that ignore interrelationships between different theoretical explanatory variables. In order to advance our understanding of how education may be related to overall quality of life, the current study estimates a structural equation model using nationally representative data for Australia to obtain the direct and indirect associations between education and life satisfaction through five different adult outcomes: income, employment, marriage, children, and health. Although we find the estimated direct (or net) effect of education on life satisfaction to be negative and statistically significant in Australia, the total indirect effect is positive, sizeable and statistically significant for both men and women. This implies that misleading conclusions regarding the influence of education on life satisfaction might be obtained if only single-equation models were used in the analysis

Locus of control and its intergenerational implications for early childhood skill formation

We propose a model in which parents have a subjective belief about the impact of their investment on the early skill formation of their children. This subjective belief is determined in part by locus of control (LOC), i.e., the extent to which individuals believe that their actions can influence future outcomes. Using a unique British cohort survey, we show that maternal LOC measured during the 1st trimester strongly predicts early and late child cognitive and noncognitive outcomes. Further, we utilize the variation in maternal LOC to improve the specification typically used in the estimation of parental investment effects on child development

Early maternal employment and non-cognitive outcomes in early childhood and adolescence: evidence from British birth cohort data

We analyse the relationship between early maternal employment and child emotional and behavioural outcomes in early childhood and adolescence. Using rich data from a cohort of children born in the UK in the early 1990s, we find little evidence of a strong statistical relationship between early maternal employment and any of the emotional outcomes. However, there is some evidence that children whose mother is in full-time employment at the 18th month have worse behavioural outcomes at ages 4, 7, and 12.We suggest that these largely insignificant results may in part be explained by mothers who return tofull-time work earlier being able to compensate their children: we highlight the role of fathers’ time investment and alternative childcare arrangements in this respect

Income is More Protective Against Pain in More Equal Countries

It is empirically well-established that the rich suffer less pain on average than the poor. However, much less is known about the factors that moderate the size of the income gradient of pain. Using data from over 1 million adults from 127 countries worldwide, this article conducts a systematic test on whether income inequality moderates the pain gap between the rich and the poor. While pain is negatively associated with income in all but one country, there is strong evidence to suggest that an increase in income is much more protective against pain in countries where the income distribution is relatively more equal. The results are robust to using different measures of income inequality, removing outliers, and accounting for country and year fixed effects. We explain our results through the lens of income rank effects on health outcomes. Overall, our findings suggest that pain-reducing policies through income redistribution may need to take income inequality into consideration when evaluating their effectiveness

Large losses from little lies: Strategic gender misrepresentation and cooperation

This paper investigates the possibility that a small deceptive act of misrepresenting one's gender to others reduces cooperation in the Golden Balls game, a variant of a prisoner's dilemma game. Compared to treatments where either participants' true genders are revealed to each other in a pair or no information on gender is given, the treatment effects of randomly selecting people to be allowed to misrepresent their gender on defection are positive, sizeable, and statistically significant. Allowing people to misrepresent their gender reduces the average cooperation rate by approximately 10-12 percentage points. While one explanation for the significant treatment effects is that participants who chose to misrepresent their gender in the treatment where they were allowed to do so defect substantially more, the potential of being matched with someone who could be misrepresenting their gender also caused people to defect more than usual as well. On average, individuals who chose to misrepresent their gender are around 32 percentage points more likely to defect than those in the blind and true gender treatments. Further analysis reveals that a large part of the effect is driven by women who misrepresented in same-sex pairs and men who misrepresented in mixed-sex pairs. We conclude that even small short-term opportunities to misrepresent one's gender can potentially be extremely harmful to later human cooperation