Aging society,health and the environment

In a general-equilibrium OLG model with endogenous longevity, a political economy and a social planner solution are contrasted mainly with respect to public supplies of health care and environment protection. The latter is relatively more supported by the young because its beneficial effect on longevity takes more time to occur but then lasts longer; while the old relatively prefer health spending. With population aging, political claims for health care expenditure are self-reinforcing. This framework is able to generate a quite rich set of results. In the political economy larger health care/consumption and health care/environmental quality ratios are implemented. Changes in risk aversion, production pollution, health inputs’ elasticity of substitution may have opposite impacts across regimes. More complete annuity markets improve welfare. Further comparative statics is analyzed.     

Explaining Optimistic Old Age Disability and Longevity Expectations

Biased health care decision making has been regarded as responsible for inefficient behaviours (for example, the limited insurance purchase). This paper empirically examines two sets of biases in the perception of old age disability and longevity. Particularly, we test for the existence of a so called cumulative bias and, secondly’ a so called optimism’ bias. Findings are suggestive of a significant overestimation of disability risks but no overestimation of longevity expectations is found. Both disability and longevity perceptions appear to exhibit a ‘cumulative’ pattern when mapped over time. Healthier individuals are less likely to perceive high disability and longevity risks whilst female and younger respondents perceive a higher risk of disability in old age at a population level but not at an individual level.     

The Relative Importance of Health

This article seeks to extend Michalos’ [Social indicators research and health-related quality of life (QoL) research. Social Indicators Research, 65, 27–72, 2004] discussion on bridging social indicators research and health-related QoL (HRQoL) research through an examination of (1) the relative importance of satisfaction with one’s own health to another common measure of QoL—Life satisfaction, and (2) the relative importance of health in relation to other major life domains. Using data from two surveys, this article found that individuals may perceive health as most important in relation to other major life domains but satisfaction with one’s own health may not necessarily be the most important determining factor (in relation to satisfaction with other major life domains) of QoL as measured by life satisfaction. These findings support Michalos’ (Social indicators research and HRQoL research. Social Indicators Research, 65, 27–72, 2004) call for caution regarding the interpretation of research results on HRQoL since many HRQoL measures are measures of satisfaction with one’s own health and should not be considered as measures of QoL.     

Does globali zation affect human well-being?

The prevailing theorizing of globalization’s influence of human well-being suggests to assess both the favorable and unfavorable outcomes. This study formulates a dialectical model, adopts a comprehensive globalization measure and uses a three-wave panel data during 1980–2000 to empirically test direct and indirect effects of global flows’ human consequences. The outcomes from random effect modeling reveal significant positive impacts of political globalization, whereas economic and social globalization do not generate favorable influences when development level and regional differences are operated as controls. The overall globalization index is found to generate expected favorable influence on an overall human development index. Within developing countries, globalization’s human influence was not as significant as in industrial countries, however. Several hypotheses about globalization’s potential negative effects through increasing societal instabilities and reducing state power and social spending are not supported in analysis. It is concluded that globalization identified by increased global flows and exchanges contributes rather than hampers progress in human welfare.     

Accounting for family background when designing optimal income taxes: a microeconometric simulation analysis

We develop an extended version of Roemer’s Equality of Opportunity (EOp) criterion that accounts for income differentials between as well as within types, where types are defined by circumstances that are beyond people’s control (parental education, in this study). A microeconometric model of labour supply in Italy is employed to identify income tax-transfer rules that are optimal according to the extended EOp criterion. Overall, the results do not conform to the perhaps common expectation that the more conventional Equality of Outcome criterion is more supportive of “interventionist” (redistributive) policies than the EOp approach.     

Do Measured and Unmeasured Family Factors Bias the Association Between Education and Self-Assessed Health?

The association between educational attainment and self-assessed health is well established but the mechanisms that explain this association are not fully understood yet. It is likely that part of the association is spurious because (genetic and non-genetic) characteristics of a person’s family of origin simultaneously affect one’s educational attainment and one’s adult health. In order to obtain an unbiased estimate of the association between education and health, we have to control for all relevant family factors. In practice, however, it is impossible to measure all relevant family factors. Sibling models are particularly appropriate in this case, because they control for the total impact of family factors, even if not all relevant aspects can be measured. I use data on siblings from a US study (MIDUS) and Dutch study (NKPS) to assess the total family impact on self-assessed health and, more importantly, to assess whether there is a family bias in the association between educational attainment and self-assessed health. The results suggest that there is a substantial family effect; about 20% of the variation in self-assessed health between siblings can be ascribed to (measured and unmeasured) family factors. Measured family factors, such as parental education and father’s occupation, could account only for a small part of the family effect. Furthermore, the results imply that it is unlikely that there is substantial bias due to family effects in the association between education and self-assessed health. This strengthens the conclusions from prior studies on the association between education and self-assessed health.     

Measuring longevity achievements under welfare interdependencies: a case for joint life expectancy indicators

Whereas period life expectancy constitutes an intuitive indicator of the survival conditions prevailing at a particular period, this paper argues that, given the existence of welfare interdependencies, that widespread indicator is nonetheless an incomplete measure of the longevity achievements relevant for human well-being. The central importance of coexistence for human-beings implies that usual life expectancy measures should be complemented by joint life expectancy indicators, which measure the average coexistence time under particular survival conditions. After a study of the theoretical foundations of ‘single’ and ‘joint’ life expectancy indicators, it is shown that joint life expectancy measures tend to enrich significantly the comparison of longevity achievements across countries and periods. Moreover, the introduction of joint life expectancy indicators—as a complement to conventional life expectancy measures—into multi-variable indexes such as the United Nations’ HDI is also shown to affect international rankings of standards of living to a non negligible extent.

Subjective Wellbeing and its Meaning for Young People in a Rural Australian Center

In Australia, wellbeing has been used as an assessment of how young people are doing by health researchers, youth researchers and psychologists. The concept ‚wellbeing’ is increasingly applied to young people in their late teens and early twenties with little discussion of young people’s perspectives. Using quantitative measures of subjective wellbeing as well as qualitative interviews to allow young people to discuss the concept of wellbeing, this study explored the levels and meanings of wellbeing among 91 young people (aged 16–24) from a rural center in south-east Australia. Key components of wellbeing for young people were found to include relationships, psychological dimensions and personal issues while family and ‚pressure’ impacted wellbeing. For most young people, wellbeing was multidimensional, holistic and centred around their own lives. Findings suggest that the Deiner et al. satisfaction with life scale was an appropriate measure of young people’s wellbeing but that health, sociology of youth and psychological approaches all contribute to young people’s perspectives of wellbeing and need to be incorporated into a more holistic measure of SWB for young people.     

Mental Health of Parents and Life Satisfaction of Children: A Within-Family Analysis of Intergenerational Transmission of Well-Being

This paper addresses the extent to which there is an intergenerational transmission of mental health and subjective well-being within families. Specifically it asks whether parents’ own mental distress influences their child’s life satisfaction, and vice versa. Whilst the evidence on daily contagion of stress and strain between members of the same family is substantial, the evidence on the transmission between parental distress and children’s well-being over a longer period of time is sparse. We tested this idea by examining the within-family transmission of mental distress from parent to child’s life satisfaction, and vice versa, using rich longitudinal data on 1,175 British youths. Results show that parental distress at year t − 1 is an important determinant of child’s life satisfaction in the current year. This is true for boys and girls, although boys do not appear to be affected by maternal distress levels. The results also indicated that the child’s own life satisfaction is related with their father’s distress levels in the following year, regardless of the gender of the child. Finally, we examined whether the underlying transmission correlation is due to shared social environment, empathic reactions, or transmission via parent–child interaction.     

The labor market effects of national health insurance: evidence from Taiwan

This paper investigates the impacts of national health insurance on the labor market, by considering the case of Taiwan, which implemented national health insurance in March 1995. Taiwan’s national health insurance is financed by premiums, which are proportional to an employee’s salary. These premiums may introduce distortions to the labor market. Based on repeated cross-sections of individual data we find that, on average, private sector employees’ work hours declined relative to their public sector counterparts, whereas their relative wage rates were almost unchanged with the introduction of national health insurance. The results suggest that neither private sector employers nor their employees were able to shift their premium burden to each other.      

Investigating the mechanism of marital mortality reduction: The transition to widowhood and quality of health care

While it is well known that the widowed suffer increased mortality risks, the mechanism of this survival disadvantage is still under investigation. In this article, we examine the quality of health care as a possible link between widowhood and mortality using a unique data set of 475,313 elderly couples who were followed up for up to nine years. We address whether the transition to widowhood affects the quality of care that individuals receive and explore the extent to which these changes mediate the elevated mortality hazard for the widowed. We analyze six established measures of quality of health care in a fixed-effect framework to account for unobserved heterogeneity. Caregiving and acute bereavement during the transition to widowhood appear to distract individuals from taking care of their own health care needs in the short run. However, being widowed does not have long-term detrimental effects on individuals’ ability to sustain contact with the formal medical system. Moreover, the short-run disruption does not mediate the widowhood effect on mortality. Nevertheless, long after spousal death, men suffer from a decline in the quality of informal care, coordination between formal and informal care, and the ability to advocate and communicate in formal medical settings. These findings illustrate women’s centrality in the household production of health and identify important points of intervention in optimizing men’s adjustment to widowhood.     

Rising Happiness in Nations 1946–2004: A Reply to Easterlin

The ‘Easterlin paradox’ holds that economic growth does not add to the quality-of-life and that this appears in the fact that average happiness in nations has not risen in the last few decades. The latest trend data show otherwise. Average happiness has increased slightly in rich nations and considerably in the few poor nations for which data are available. Since longevity has also increased, the average number of happy life years has increased at an unprecedented rate since the 1950s.     

Prenatal Health,Educational Attainment,and Intergenerational Inequality: The Northern Finland Birth Cohort 1966 Study

In this article, we study the effects of prenatal health on educational attainment and on the reproduction of family background inequalities in education. Using Finnish birth cohort data, we analyze several maternal and fetal health variables, many of which have not been featured in the literature on long-term socioeconomic effects of health despite the effects of these variables on birth and short-term health outcomes. We find strong negative effects of mother’s prenatal smoking on educational attainment, which are stronger if the mother smoked heavily but are not significant if she quit during the first trimester. Anemia during pregnancy is also associated with lower levels of attained education. Other indicators of prenatal health (pre-pregnancy obesity, mother’s antenatal depressed mood, hypertension and preeclampsia, early prenatal care visits, premature birth, and small size for gestational age) do not predict educational attainment. Our measures explain little of the educational inequalities by parents’ class or education. However, smoking explains 12%—and all health variables together, 19%—of the lower educational attainment of children born to unmarried mothers. Our findings point to the usefulness of proximate health measures in addition to general ones. They also point to the potentially important role played by early health in intergenerational processes.     

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.     

Indonesia’s social capacity for population health: the educational gap in active life expectancy

In this paper, we lay the initial groundwork for anticipating Indonesia’s future burden of disease by developing a demographic model of population health. We develop this model within the analytic framework of a Markov-based multistate life table model to calculate an important indicator of the burden of disease, the expected years of active life of elderly Indonesians. The magnitude of the gap points to the potential consequences of improvements in the nation’s educational level for the future burden of disease. The results show that having some education increases life expectancy but it also expands the expected years with a major functional problem. Overall educational attainment levels, however, are very low, indicating that Indonesia’s elderly are at the leading edge of improvements in the nation’s social capacity for health. The life tables suggest that at the early stages of development, longer life is accompanied by an expansion of morbidity.     

The Links between Migration,Poverty and Health: Evidence from Khayelitsha and Mitchell’s Plain

In the mid-1950s, the City of Cape Town was part of a wider area demarcated as a Coloured Labour Preference Area. The free movement of African people into the city was strictly controlled and the residential areas were segregated along racial lines. In terms of Apartheid’s grand design, an area designated Mitchell’s Plain was demarcated for occupation by Coloured people in 1973 while another designated Khayelitsha was allocated for African people in 1984. The two areas were incorporated in one magisterial district, Mitchell’s Plain, in the mid-1980s. A sample survey of the area was conducted in late November and early December 2000 with a focus on labour market issues. Its aim was to capture occupants of households aged 18 or older. The survey data has been interrogated to describe the connections between migration, poverty and health in a city where recent rapid urbanisation is changing the demographic profile significantly. As a consequence, the need to provide adequate infrastructure, decent housing and employment poses a daunting challenge ten years after the new democracy has been ushered in.This paper is an abridged version of a Centre for Social Science Research working paper No. 73 published in August 2004.     

The gender longevity gap: explaining the difference between singles and couples

This paper studies the respective gender longevity gap in favour of women among singles, utilitarian and altruistic couples. The following hypotheses are derived: (1) the gender longevity gap is smaller within couples than among singles; (2) marriage increases longevity of men but decreases longevity of women; and (3) the gender longevity gap decreases with an increase in wealth. The hypotheses are tested using a complete data set of the Swiss deceased at the age 65+ in 2001 and 2002, with information on the individuals’ age at death and their average earnings over the life cycle.     

A politico-economic model of aging,technology adoption and growth

This paper provides a politico-economic theory that explains how an economy evolves when the longevity of its citizens is jointly determined with the process of economic development. We propose a three-period overlapping generation model where agents’ decisions embrace two dimensions: a private choice about education and a public one on innovation policy. We find that (a) poverty traps can emerge in human capital accumulation, (b) higher life expectancy increases the incentive to innovate for both young and adults, (c) different political configurations can arise depending on endogenous demographic structures and (d) the steady state can entertain both innovation and its absence.     

An Index of Child Well-being in the European Union

While the living conditions of children and young people in the European Union have gained increasing recognition across the EU, the well-being of children is not monitored on the European level. Based on a rights-based, multi-dimensional understanding of child well-being we analyse data already available for the EU 25, using series data as well as comparative surveys of children and young people. We compare the performance of EU Member States on eight clusters with 23 domains and 51 indicators and give a picture of children’s overall well-being in the European Union. The clusters are children’s material situation, housing, health, subjective well-being, education, children’s relationships, civic participation and risk and safety.     

The relative importance of the husband’s and wife’s characteristics in family migration, 1960–2000

We explore whether the growing labor force attachment of married women has increased the importance of the wife’s characteristics in determining the household migration decision. To the contrary, we find that surprisingly little changed between 1960 and 2000. Wives were a weak determinant of family migration over the entire period. Our results suggest that it is difficult to balance two careers simultaneously, with households finding it optimal to focus primarily on the husband’s career rather than settling for significantly inferior labor market outcomes for each spouse.