Chapter 62: Poverty and inequality in Australia, 2001–2018

in Silber, Jacques (Ed.) Research Handbook on Measuring Poverty and Deprivation (2023)

Prenatal Economic Shocks and Birth Outcomes in UK Cohort Data

in Economics and Human Biology (2021), 41

We consider the effects of major prenatal economic shocks experienced by mothers on two indicators of newborn-infant health, birth weight and head circumference, using detailed microdata from the UK ... [more ▼]

We consider the effects of major prenatal economic shocks experienced by mothers on two indicators of newborn-infant health, birth weight and head circumference, using detailed microdata from the UK ALSPAC survey. Controlling for physiological and socioeconomic factors, an economic shock in the first 18 weeks of gestation lowers birth weight by 40-70 grams and head circumference by 2-3mm. We find evidence of transmission via poorer maternal health due to absolute material deprivation and tobacco and alcohol consumption, but not for the endocrinological effects of increased psychosocial anxiety. The fragile-male hypothesis holds for birth weight but not for head circumference, as predicted by recent theories on gender differences in prenatal development. [less ▲]

Estimating the Mental Health Effects of Social Isolation

in Applied Research in Quality of Life (2016), 11

It is frequently hypothesized that feelings of social isolation are detrimental for an individual's mental health, however standard statistical models cannot estimate this effect due to reverse causality ... [more ▼]

It is frequently hypothesized that feelings of social isolation are detrimental for an individual's mental health, however standard statistical models cannot estimate this effect due to reverse causality between the independent and dependent variables. In this paper we present endogeneity-corrected estimates of the mental health consequences of isolation (based on self-assessed loneliness scores) using Australian panel data. The central identification strategy comes from a natural source of variation where some people within our sample are required by work or study commitments to move home. This relocation may break individuals' social ties, resulting in significantly higher reported feelings of loneliness and consequently may lower mental health scores. The method gives results that are significant, robust and pass a battery of diagnostic tests. Estimates indicate that feelings of isolation have large negative consequences for psychological well-being, and that the effects are larger for women and older people. The results suggest that at current levels, a 10% reduction applied to all individuals would reduce annual expenditure on mental illness in Australia by approximately $3B AUD, or around $150 AUD per person. [less ▲]