The effects of income on health: new evidence from the Earned Income Tax Credit

Review of Economics of the Household - This study examines the relationship between income and health by using an expansion of the Earned Income Tax Credit (EITC), which increased benefits to...     

Explaining life course and cohort variation in the relationship between education and health: the role of income

Researchers have attempted to explain the relationship between education and health by incorporating mediators-such as income--through which schooling affects health. Research has also shown that the education-health relationship varies across age and cohort. This article integrates these themes in an investigation of the role income plays in the changing relationship between education and health. Using data from the 1972-2001 National Health Interview Surveys, I find that the direct relationship between education and health is weakening across cohorts, while the indirect effect of education through income is strengthening across cohorts. Cohort change in this indirect effect is equally attributable to change in the relationships between education and income and between income and health. Life course differences in direct and indirect relationships vary in shape, suggesting that a substantive explanation---one that does not rely solely on selective mortality--is warranted. The results suggest that future research should continue to employ a life course framework.     

Inside the firm: Socioeconomic versus agency perspectives on firm competitiveness

In this paper, we examine agency theory’s presumptions of self-interest, opportunistic behavior, and the notion of the “economic man” (or woman). We contend that the application of agency theory’s presumptions to the firm may imply high costs, competitive disadvantage, and high firm risk. We suggest that agency theory’s presumptions may not contribute to the interests of the principal, agent, or other stakeholders. Alternatively, we discuss socioeconomic theories’ presumptions of enlightened self-interest, trustworthy behavior, and the possibility of the noneconomic person. We argue that the extension of socioeconomic theories to the firm may imply low costs, competitive advantage, and low firm risk. We contend that the socioeconomic presumptions may contribute to the interests of various stakeholders.     

Analysing the effects of tax-benefit reforms on income distribution: a decomposition approach

To assess the impact of tax-benefit policy changes on income distribution over time, we suggest a methodology based on counterfactual tax-benefit simulations. Changes in inequality/poverty indices are decomposed into three contributions: changes in the tax-benefit structure, changes in nominal levels of market incomes and tax-benefit money parameters, and all other changes, including shifts in market income inequality and demographic composition. The policy effect can be evaluated conditionally on base-period data or end-period data; it is also possible to average the two measures, which corresponds to an application of the Shapley value method as reinterpreted by Shorrocks (Decomposition Procedures for Distributional Analysis: A Unified Framework Based on the Shapley Value, University of Essex and Institute for Fiscal Studies, Wivenhoe Park, 1999). The decomposition is used to quantify the relative role of policy changes on inequality/poverty trends in France and Ireland in the 1990s. When end-period data are not available, e.g., for forward looking analysis of possible reforms, the base weighted decomposition helps to extract an absolute measure of the impact of tax-benefit changes on income distribution as evaluated against a distributionally neutral benchmark; in our application, it is not significantly different from the policy effect stemming from the Shorrocks-Shapley decomposition. Estimates of this type are derived to assess recent policy changes in twelve European countries.     

The EITC and the labor supply of adult dependents: direct effects and family income effects

Tax data suggest that the population of adult dependents—adults relying on the support of others for the majority of their financial needs—has more than doubled over the last decade. However, little is known about how taxes affect the labor supply decisions of this population. This paper provides an initial investigation, studying the impact of the Earned Income Tax Credit (EITC) expansions of the early 1990s on the labor supply of adult dependents living with their relatives. I find that dependent individuals who were not a part of the nuclear family responded to the EITC expansions, increasing labor force participation by about 5 percentage points. For adult children, I show that the absence of a net response is likely due to an unexpected consequence of the EITC: expanded family credits led to a decrease in their labor force participation.     

The impact of parenting education on parent and child behaviors: Moderators by income and ethnicity

Parenting education has emerged as a promising resource for supporting parents, but the relative impact of parenting education among families facing higher versus lower risk remains unclear. The present study explored the effects of participating in an evidence-based parenting education series and examined whether those effects were moderated by families' socio-demographic contexts (income level and ethnicity status). Results indicated that parenting education series serving predominantly lower-income parents resulted in greater improvements in parents' parenting skills and their children's behaviors compared to series serving higher-income parents. Attending a parenting series with a higher proportion of Latino parents also significantly predicted greater improvements in child behaviors, but not parent skills. These findings provide preliminary evidence that parenting education may be most effective when it targets underserved populations. The findings further highlight the importance of continuing to explore the influence of parenting education adapted for low-income and Latino families to inform the design of evidence-based programs.     

Tracing out the effects of demographic changes on the income distribution

During the 1980s and 1990s fertility decisions varied significantly and not uniformly along the income distribution in Argentina. In this paper we study the effects of these demographic changes on income poverty and inequality by applying microeconometric decomposition techniques. In particular, we simulate the equivalized household income distribution that would emerge if individuals observed in a given base year had taken fertility decisions as they did in another different year. The results suggest that these demographic factors have contributed considerably to the changes in poverty and inequality experienced by Argentina since the 1980s.     

Education and the changing shape of the income gradient in health

Research on the social determinants of health has increasingly sought to understand the relative importance of different features of socioeconomic status. Much of the ensuing debate has wavered between education and income, with recent research leaning increasingly toward income. This research has not, however, consistently explored interactions between different features of socioeconomic status and, in trying to understand the independent effects of different components of socioeconomic status, may have missed important features of socioeconomic position. With an eye toward examining how features of socioeconomic status combine and coalesce, this paper examines variation in the income-health association by level of education. Theories derived both from medical sociology and health economics suggest synergistic interactions between income and education, but they are unclear as to the direction and magnitude of these interactions. Results from two large and nationally representative data sets (the 1996-1997 Community Tracking Study and the 1972-2000 General Social Survey) indicate that the positive relationship between income and health varies substantially in both its strength and shape by level of education. Education improves health, and its effects are larger at lower levels of income. Moreover, education reduces the strength and curvature of the income-health relationship. Consequently, those with more education have better health for all levels of income, and fewer income-based disparities exist among the well educated than among the less well educated. The linear "gradient" relationship between income and health is, thus, more characteristic of groups with higher levels of education. Additional analyses indicate that these interactions existed in the United States in each of the last three decades. The results are discussed in light of theory regarding the perpetuation of health disparities, as well as current debates regarding the apparent incompatibility of distributive versus aggregative goals in health policy.     

The effect of education,income inequality and merit on inequality acceptance

A large number of observational and experimental studies have explored the determinants of individual preferences for redistribution. In general, inequalities are more likely to be accepted by people of higher socioeconomic status, in richer societies and when inequalities are perceived as justifiable owing to differences in productivity. Almås et al. (2020) show that in a relatively unequal society (the United States), the highly educated accept inequality significantly more than the less educated, whereas, in a relatively equal society (Norway), the less educated accept inequality more, but not significantly more, than the highly educated. Here, we replicate this finding using data from experiments conducted in four locations across three countries all distinct from the ones studied by Almås et al. However, a closer look at the data indicates that the origin of the interaction effect varies depending on which societies one compares. Data for Norway and the United States indicate that meritocratic values among the highly educated are less prevalent in more equal societies and that this is the driver of the triple interaction effect. In contrast, in our data the interaction effects have multiple drivers.     

Socioeconomic status and cumulative disadvantage processes across the life course: implications for health outcomes

Given the complexity surrounding various interactions among health determinants and the challenge of being able to adequately describe the dynamic processes through which health determinants have their effects, the purpose of this paper is to provide a conceptual overview demonstrating the effects of socioeconomic status and cumulative disadvantage on producing health disparities across the life course. The idea underlying cumulative disadvantage is that socioeconomic-based health inequalities will increase across the life course, mostly because of differential exposure to risk factors and access to protective resources. The advantage of life course sociology is its consideration of early life experiences, and the social and historical context of their occurrences, as important contingencies in producing these systematic socioeconomic differences in health gradients.     

The effects of income inequality and income level on mortality vary by population size in Texas counties

OBJECTIVES: This study uses the counties of Texas to empirically test the predictions of Wilkinson's theory on the role of income and inequality in explaining health differentials in populations. Wilkinson predicts (1) that health is affected more by income inequality than average income in areas with large population, and (2) that health is affected more by average income than income inequality in areas with small population. We investigate how large the population of a unit must be for income inequality within the unit to affect mortality. METHODS: Measures of income inequality were computed from the 1990 U.S. census data and mortality was computed from Vital Statistics data. Poisson regressions estimated the age-adjusted relative risk of the top quintile relative to the bottom quintile for equality and for income among selections of Texas counties based on population size. County ethnic composition, educational level, and health care access were controlled for. RESULTS: Among counties with populations greater than 150,000, the risk of death was lower in counties with more equal income distribution than in counties with less equal income distribution. Among counties with population less than 150,000, median income affected relative risk in counties with less than 30 percent Hispanics, but not in those with more than 30 percent Hispanics. CONCLUSIONS: This study provides some support for the predictions of Wilkinson's theory.     

Socioeconomic status and health: a micro-level analysis of exposure and vulnerability to daily stressors

This study examines the interconnections among education--as a proxy for socioeconomic status--stress, and physical and mental healthy by specifying differential exposure and vulnerability models using data from The National Study of Daily Experiences (N = 1,031). These daily diary data allowed assessment of the social distribution of a qualitatively different type of stressor than has previously been examined in sociological stress research--daily stressors, or hassles. Moreover, these data allowed a less biased assessment of stress exposure and a more micro-level examination of the connections between stress and healthy by socioeconomic status. Consistent with the broad literature describing socioeconomic inequalities in physical and mental health, the results of this study indicated that, on any given day, better-educated adults reported fewer physical symptoms and less psychological distress. Although better educated individuals reported more daily stressors, stressors reported by those with less education were more severe. Finally, neither exposure nor vulnerability explained socioeconomic differentials in daily health, but the results clearly indicate that the stressor-health association cannot be considered independent of socioeconomic status.     

The effects of income and inflation on personal satisfaction: Functional measurement in economic psychology

Controlled experimental designs and functional measurement procedures were used to study how people perceive the effects of changes in major economic variables. In experiment I one group of subjects rated economic well-being and another group of subjects rated personal satisfaction for a variety of economic scenarios described by variations in salary, rate of increase in salary (annual raise), and annual rate of inflation. Stimulus interaction effects were found for each response scale showing that there is not a simple subtractive relationship between wage gains and inflation in determining perceived economic impact. Experiment 2 further investigated the interactive effects of raise and inflation on personal satisfaction. Results were discussed in terms of two complementary psychological processes: a “negativity effect” whereby unfavorable levels of raise and inflation have disproportionate weight, and a comparison of raise and inflation rate whereby personal satisfaction is incremented disproportionately when raise changes from below the inflation rate to above the inflation rate. Psychological concepts revealed in this study were related to economic concepts of “elasticity of demand” and “money illusion”.     

Language matters: effects of linguistic agency assignment on HPV prevention advocacy in Chinese public health education materials

This study was conducted to examine the effects of linguistic agency assignment on human papillomavirus (HPV) prevention advocacy in Chinese public health education materials. The participants (N?=?481) were asked to read one of four versions of an article about the HPV infection. The results indicated that the linguistic agency assignment of threat used in the context of health education in the English language functioned similarly in the Chinese context with only minor differences. In the Chinese language context, the respondents tended to report higher levels of personal susceptibility when the linguistic agency was assigned to the HPV vaccine and not human factors. Minor cross-cultural issues are discussed. The findings of this study contribute to the health communication literature by explicating the persuasive power of language and demonstrating that the concept of linguistic agency assignment is applicable across cultures for the effective promotion of public health education.     

Perceived continuing education needs and job relevance of health education competencies among health education and promotion practitioners in college health settings

Objective and Participants: The author conducted this study to determine college health education and promotion practitioners' perceived continuing education needs and perceived job relevance in relation to national health education responsibilities and competencies. Methods: In Spring 2006, the author invited college health education and promotion professionals to participate in an online survey, using 3 listservs. Of 276 individuals visiting the Web site, 141 participants completed the survey (51%). Participants rated their perceived training needs and job relevance for the 35 National Commission for Health Education Credentialing (NCHEC) competencies as well as preferred training formats. Results: Participants identified the following competencies as those in which they needed additional training: designing data-collection instruments, securing fiscal resources, interpreting evaluation and research results, carrying out evaluation and research plans, and developing plans for evaluation and research. They identified the following competencies as being the most relevant to their jobs: demonstrating a variety of skills in delivering strategies, interventions, and programs; using a variety of methods to implement strategies, interventions, and programs; initiating a plan of action; and using health-related information resources. The most preferred methods of obtaining additional continuing education were attending the American College Health Association annual meeting (67%) and completing home self-study print materials (67%). Conclusions: Collegiate professional organizations should offer a variety of continuing education opportunities centering on NCHEC competencies, specifically those perceived as needed by study participants.     

Enduring stigma: the long-term effects of incarceration on health

Although incarceration rates have risen sharply since the 1970s, medical sociology has largely neglected the health effects of imprisonment. Incarceration might have powerful effects on health, especially if it instills stigma, and it could provide sociologists with another mechanism for understanding health disparities. This study identifies some of incarceration's direct and indirect effects and rigorously tests them using the National Longitudinal Survey of Youth. It finds that incarceration has powerful effects on health, but only after release. A history of incarceration strongly increases the likelihood of severe health limitations. Furthermore, any contact with prison is generally more important than the amount of contact, a finding consistent with a stigma-based interpretation. Although this relationship is partly attributable to diminished wage growth and marital instability, the bulk of the effect remains even under the most stringent of specifications, including controls for intelligence and the use of fixed effects, suggesting a far-reaching process with a proliferation of risk factors. The study also finds that incarceration contributes only modestly to racial disparities, that there are few synergistic interactions between incarceration and other features of inequality, including schooling, and that the evidence for a causal effect is much weaker among persistent recidivists and those serving exceptionally long sentences. These study findings are inconsistent with recent speculation; nevertheless, incarceration is an important addition to sociology's research agenda. Exploring incarceration could lead to, among other things, a fruitful synergy among studies on fundamental causes, stigma, and stress.     

AIDS: health education in schools:The role of the community child health services

SUMMARY. Health education is seen as the only effective method of combating the spread of AIDS, until an adequate immunisation procedure is discovered. The use of both information and education within schools is discussed, particularly emphasising the need for schools and the community child health services to work closely together. The article represents the views of the authors and is not an official document     

The effects of income source,context, and income level on tax compliance decisions in a dynamic experiment

This study employs a laboratory experiment to explore the joint effect of income source (earned versus endowed) and decision context (tax versus nontax) on tax compliance behavior. During the experiment, subjects faced various income levels and made multiple reporting decisions. The results indicate that overall compliance is not significantly affected by the interaction of income source and context. However, this joint effect influences the relationship between income level and compliance and how compliance behavior evolves over time. In both cases, the treatment group with earned income in a tax context displays behavior that is distinct from the other three groups.     

Long-run effects of democracy on income inequality in Latin America

I address the link between democracy and inequality in Latin America, analyzing whether the degree of democracy that birth cohorts experience during the course of their formative years is related to labor income dispersion later, in adulthood. For this, I measure inequality at the cohort level by using pseudo-panel data built from household surveys for fifteen Latin American countries (from circa 1995 to circa 2011) and measure democracy as the discounted cumulative value of the degree of democracy during the cohort’s formative years. I find that cohorts that have higher discounted cumulative values of the degree of democracy show lower income inequality. However, the effect of democracy on income dispersion is driven by those cohorts that benefited from the surge of democracies that came to exist during the second half of the twentieth century. I also present suggestive evidence that education is one mechanism explaining these results.