Binge drinking and labor market success: a longitudinal study on young people

This paper presents a two-equation model of joint outcomes on an individual's decision to binge-drink and on his/her annual labor market earnings. The primary data source is the 1979 cohort of the National Longitudinal Survey of Youth, 1979–1994. We show that binge-drinking behavior is quite alcohol-price responsive and is a rational addiction. A new result is that an individual's decision to binge-drink has a statistically significant negative effect on his/her earnings. Furthermore, we conducted simulations of the short-run and long-run impacts of increasing the alcohol price. They showed that that the tendency for an individual to binge-drink heavily is reduced significantly, and the reduction is greater in the long- than short-run simulation. Also, an individual's annual earnings were increased. However, in the structural model, an individual's earnings have no significant effect on his/her tendency to engage in binge drinking. Our results contradict earlier findings from cross-sectional evidence that showed increased alcohol consumption raised an individual's earnings or wages.

Divorced Fathers’ Proximity and Children’s Long-Run Outcomes: Evidence From Norwegian Registry Data

This study examines the link between divorced nonresident fathers’ proximity and children’s long-run outcomes, using high-quality data from Norwegian population registers. We follow (from birth to young adulthood) each of 15,992 children born into married households in Norway in the years 1975–1979 whose parents divorced during his or her childhood. We observe the proximity of the child to his or her father in each year following the divorce and link proximity to educational and economic outcomes for the child in young adulthood, controlling for a wide range of observable characteristics of the parents and the child. Our results show that closer proximity to the father following a divorce has, on average, a modest negative association with offspring’s outcomes in young adulthood. The negative associations are stronger among children of highly educated fathers. Complementary Norwegian survey data show that highly educated fathers report more post-divorce conflict with their ex-wives as well as more contact with their children (measured in terms of the number of nights that the child spends at the father’s house). Consequently, the father’s relocation to a more distant location following the divorce may shelter the child from disruptions in the structure of the child’s life as they split time between households and/or from post-divorce interparental conflict.     

Relative Standing and Subjective Well-Being in South Africa: The Role of Perceptions,Expectations and Income Mobility

Most studies that explore the impact of relative standing on subjective well-being use objective measures of the individual’s relative position, such as the mean income of the reference group or the individual’s ranking in the relevant income distribution. In this paper, using a new household survey from South Africa, we are able to derive subjective measures of relative standing, as information is collected on individuals’ perceptions of where they rank in the income distribution. We find considerable differences between objective and subjective measures of an individual’s relative ranking. Furthermore, our results suggest that an individual’s perceived relative status has a significantly larger effect on subjective well-being than objective measures of relative status based on reported income. We also examine the effects on subjective well-being of how individuals perceive their relative position in the income distribution to have changed since childhood, and what they expect their relative position to be in the future. We find that future upward mobility has a smaller effect than upward mobility compared to one’s past, suggesting that life satisfaction is influenced more by what has been achieved than by anticipated achievements.     

Building Financial Satisfaction

This paper aims to contribute further research on the conceptualization of individual financial satisfaction as a particular domain of satisfaction with life as a whole. Based on the 2003 Survey on Living Conditions and Poverty for Andalucía (Spain) and using a self-reported measure of welfare, ordered probit models are used to analyze the extent to which individual financial satisfaction can be solely explained by income in absolute terms, or alternatively, by taking into account the importance of relative income in its two dimensions: (1) personal aspirations as individual’s adaptation to previous and future income levels (intra-individual comparisons), and (2) social comparisons as individual’s concern for her peer’s income (inter-personal dependency).     

The Seduction of the Surface: From Alice to Crash

Drawing on a qualitative analysis of Swedish newspaper debates in 1979 and 1995, this article examines how Swedish newspapers refer to biological sex difference as central to drinking practices. The study shows that women are a special category of concern in debate about gender and drinking in both 1979 and 1995. Further, it shows that Swedish newspapers draw upon biology in different ways in the two years. In 1979, debate about drinking during pregnancy and Fetal Alcohol Syndrome (FAS) is central and newspapers link biomedical research on FAS to the moral idea that mothers do anything to avoid harm to children. In 1995, debate about girls' drinking habits is central and newspapers link sex hormones and neurotransmitters to the moral idea that girls shouldn't “drink like men.” These differences are discussed in the context of Swedish media interest in evolutionary psychology and biomedical solutions to alcohol problems during the 1990s.     

Role Balance and Marital Satisfaction in Taiwanese Couples: An Actor-Partner Interdependence Model Approach

Role balance theory proposed that a well-organized self-system, rather than a salient hierarchy role, contributes to individual psychological well-being. However, research on role balance focuses only on the intrapersonal process without regard for the interpersonal process on the spouse’s well-being. Furthermore, pervious studies were all conducted in the East cultures (countries) which lead to the doubt whether the theory could be applied into East cultures such as collectivism. Therefore, in this study, we surveyed 204 dyads form Taiwan. Participants completed the Role Balance Scale and Kansas Marital Satisfaction Scale. The Actor-Partner Interdependence Model (APIM) was used to analyze the data. Results indicated that the husband’s role balance positively predicted his own and his wife’s marital satisfaction. Similarly, the wife’s role balance also had a positive effect on her own and her husband’s marital satisfaction. These results suggest that the influence of role balance is bidirectional within couples. Moreover, model comparisons demonstrated that the wife’s marital satisfaction was affected more by her own role balance than by her husband’s role balance. Possible mechanisms, limitations and implications of this study are discussed.     

Peer influences on adolescent alcohol consumption: evidence using an instrumental variables/fixed effect approach

In order to address empirical difficulties in research examining peer effects in alcohol consumption, I use instrumental variables/fixed effects methodology that compares students in different grades within the same school who face a different set of classmate decisions. Within this context, I suggest that alcohol availability in classmates’ homes and classmates’ parents’ alcohol abuse can be used as instruments. Results indicate that a 10% increase in the proportion of classmates who drink increases the likelihood an individual drinks by five percentage points. This paper also provides evidence of peer effects in problem drinking, such as binge drinking and drunkenness.     

Deprivation,Social Exclusion and Subjective Well-Being

This paper aims at investigating empirically the relationship between self-declared satisfaction with life and an individual’s well-being as measured by the indices of deprivation and social exclusion proposed in the income distribution literature. Results on European countries show that life satisfaction decreases with an increase in deprivation and exclusion after controlling for individual’s income, relative income and other influential factors in a multivariate setting.     

Dual-earner migration. Earnings gains, employment and self-selection

This paper examines how spouses in dual-earner couples weigh each partner’s expected wage growth in the decision to migrate. Previous research suggests that husbands’ job prospects dominate the migration choice irrespective of their relative earnings potential. Based on British panel data, this paper employs an endogenous switching model and estimates wage differentials of migrating vs. staying for husbands and wives corrected for double selectivity of migration and employment. Dual-earner couples attach a positive weight to each partner’s expected wage gains when deciding to migrate. Moreover, migrant wives’ employment decreases temporarily, and there are significant selection effects in migration and employment amongst non-migrants.     

Income Inequality and its Consequences for Life Satisfaction: What Role do Social Cognitions Play?

While it is generally agreed that income inequality affects an individual’s well-being, researchers disagree on whether people living in areas of high income disparity report more or less happiness than those in more equal environments, thereby indicating the need to study how and why income inequality matters to the individual’s well-being. Findings on group-specific reaction patterns to income inequality further fuel this need. Alesina et al. (2004) argue that a preference for inequality and the perception of the possibility of social mobility account for the indistinct relationship between income inequality and subjective well-being. Combining this hypothesis with previous research on social cognition and drawing on social justice theory, this paper aims to demonstrate the mediating nature of perceptions of income inequality. It argues that the perceived legitimacy of distributive outcomes and procedures contributes to how income inequalities affect individuals and their sense of well-being. The empirical analysis is based on data from the International Social Justice Project, developed from face-to-face interviews with a representative sample of the German population. Using structural equation modeling, the paper finds structural biases in the perception of income inequality. The paper concludes that subjective well-being is a product of the individual’s perception and legitimating processes. The results indicate that social cognition is a useful tool for studies of income inequality and subjective well-being.     

Evaluating the impact of conditional cash transfer programs on fertility: the case of the Red de Protección Social in Nicaragua

Evaluating the impact of poverty-reduction programs on fertility is complicated given that changes in incentives to have children take time to be incorporated into decision making and evaluation periods are usually quite brief. We explore the use of birth spacing as a short-run indicator of the impact of poverty-reduction programs on fertility. The data come from a Nicaraguan conditional cash transfer program that offers incentives for poor households to invest in children’s health, nutrition, and education. We estimate a stratified Cox proportional hazard model and find that the program decreased the hazard of a birth, indicating an increase in birth spacing.     

A longitudinal analysis of family migration and the gender gap in earnings in the united states and great britain

This article uses longitudinal data for the United States and Great Britain to examine the impact of residential mobility and childbirth on the earnings of women, their family earnings, and the related division of earnings by gender. This project is the _ rst to compare explicitly the impact of childbirth and family migration on women’s earnings, and it extends prior cross-sectional and longitudinal studies on isolated countries by providing a direct contrast between two major industrialized nations, using comparable measures. The results indicate that families respond in similar ways in both countries to migration and childbirth. In response to both migration and childbirth, women’s earnings fall at the time of the event and recover slowly afterward, but the magnitude of the impact is roughly twice as large for childbirth as for migration. However, migration but not the birth of a child is also associated with a significant increase in total family earnings because of increased husbands’ earnings. As a result, the effect of migration on the relative earnings of wives to husbands is similar to the effect of childbirth. These results suggest that family migration should be given consideration in the literature on the gender earnings gap.     

Wives and ex-wives: A new test for homogamy bias in the widowhood effect

Increased mortality following the death of a spouse (the “widowhood effect”) may be due to (1) causation, (2) bias from spousal similarity (homogamy), or (3) bias from shared environmental exposures. This article proposes new tests for bias in the widowhood effect by examining husbands, wives, and ex-wives in a longitudinal sample of over 1 million elderly Americans. If the death of an ex-wife has no causal effect on the mortality of her husband, then an observed association between the mortality of an ex-wife and her husband may indicate bias, while the absence of an effect of an ex-wife’s death on her husband’s mortality would discount the possibility of homogamy bias (and also of one type of shared-exposure bias). Results from three empirical tests provide strong evidence for an effect of a current wife’s death on her husband’s mortality yet no statistically signifi cant evidence for an effect of an ex-wife’s death on her husband’s mortality. These results strengthen the causal interpretation of the widowhood effect by suggesting that the widowhood effect is not due to homogamy bias to any substantial degree.     

Relative Income and Happiness in Asia: Evidence from Nationwide Surveys in China, Japan, and Korea

This study attempts to examine relative income effects on perceived happiness in three major Asian countries—China, Japan, and Korea—in comparison with the United Sates, on the basis of largely comparable nationwide surveys in these countries. Consistent with the results from previous studies in Western countries, comparisons with an individual’s own income and average income of the reference group are significantly associated with the individual’s perceived happiness in Asia. The associations between relative income and happiness are stronger for individual income than family income in China, while the opposite is true in Japan and Korea. Even after controlling for the subjective assessment of family income or personal class identification within the society as a whole, income comparisons within the reference group matter for assessing happiness, especially when using family income for comparisons. Moreover, relative deprivation within the reference group, which is measured by the Yitzhaki index, is negatively related to happiness, providing more evidence for the validity of the relative income hypothesis.     

Transition to Parenthood: The Role of Social Interaction and Endogenous Networks

Empirical studies indicate that the transition to parenthood is influenced by an individual’s peer group. To study the mechanisms creating interdependencies across individuals’ transition to parenthood and its timing, we apply an agent-based simulation model. We build a one-sex model and provide agents with three different characteristics: age, intended education, and parity. Agents endogenously form their network based on social closeness. Network members may then influence the agents’ transition to higher parity levels. Our numerical simulations indicate that accounting for social interactions can explain the shift of first-birth probabilities in Austria during the period 1984 to 2004. Moreover, we apply our model to forecast age-specific fertility rates up to 2016.     

Genetic ability and intergenerational earnings mobility

This paper examines the role of genetic ability in generating the strong positive intergenerational earnings correlation observed in the USA. We compare the intergenerational wage and earnings elasticities of adopted children with these of non-adopted children. Because adopted children’s genetic ability does not depend on that of their adoptive parents, the differences between these two samples reveal the importance of genetic ability in transmitting earnings ability across generations. We find that the earnings correlation between fathers and children would be halved if their biological link was removed. Our results suggest that inheritable ability plays a very important role in passing parents’ earnings ability on to their children.      

Effects of ability mixing in high school on adulthood earnings: quasiexperimental evidence from South Korea

We estimate impacts of ability mixing compared to ability grouping in high school education on students’ adulthood earnings. To overcome endogeneity and selection problems that plagued the previous studies, we exploit a policy experiment in South Korea in the 1970s, which changed the education regime of general high schools from grouping to mixing in major cities. We find that the mixing treatment has a positive but statistically insignificant effect on average adulthood earnings. We also find that while mixing has positive effects on low ability students’ adulthood earnings, it has smaller positive or even negative effects on higher ability students.      

The Consequences of Caregiving: Effects on Women’s Employment and Earnings

Caregiving to family members comprises a major part of familial obligations in the United States. Informal caregiving is unevenly distributed in society, with women performing most of the work and bearing the burden of its costs. This paper addresses the cost dimension of informal caregiving to family members by examining whether and how it penalizes women’s employment. Drawing data from the 1987 and 1992 National Survey of Families and Households, we examine whether and how caregiving transitions affect changes in women’s labor force participation and the implications of this caregiving transitions for their earnings. We calculate how these effects vary for demographically different groups of women: those older and younger, with and without high levels of education, and married and not married. Our findings reveal that for most women, the initiation of caregiving led to a substantial reduction in their weekly hours worked and annual earnings. However, the effects were different for various subgroups of women: those older, with fewer skills, and more competing roles paid substantial costs if they began caregiving between 1987 and 1992.     

Absolute Income,Relative Income,and Happiness

This paper uses data from the World Values Survey to investigate how an individual’s self-reported happiness is related to (i) the level of her income in absolute terms, and (ii) the level of her income relative to other people in her country. The main findings are that (i) both absolute and relative income are positively and significantly correlated with happiness, (ii) quantitatively, changes in relative income have much larger effects on happiness than do changes in absolute income, and (iii) the effects on happiness of both absolute and relative income are small when compared to the effects several non-pecuniary factors.

Private versus public financing of education and endogenous growth: A comment on Bräuninger and Vidal

This note shows that the long-run effect in the case of a low skill trap in Br?uninger and Vidal (Journal of Population Economics (2000) 13:387–401) contains a mistake. While not affecting the paper's basic intuition, this implies that the discussion in the short-run analysis also applies in the long-run. Received: 24 April 2001/Accepted: 9 June 2001 I wish to thank Alessandro Cigno and an anonymous referee for useful comments. Responsible editor: Alessandro Cigno.