Tags

Type your tag names separated by a space and hit enter

Can positive income anticipations reverse the mental health impacts of negative income anxieties?
Econ Hum Biol 2019; 35:107-122EH

Abstract

Prospect theory suggests losses are more influential than equivalent sized gains in individual level decision-making. Extending this literature, we use longitudinal National Population Health Survey data (2000-01 to 2010-11) to investigate whether experienced psychological distress impacts of greater economic insecurity for working age Canadians can be fully reversed by equal sized increases in security. Economic insecurity (security) is defined as the probability of an annual income decrease (increase) of 25 percent or more. Our identification strategy employs fixed effects estimation and a set of instruments to control for unobserved heterogeneity and reverse causality. Results suggest that an initial one standard deviation increase in economic insecurity predicts a rise in psychological distress of about 0.57 standard deviations for males and 0.54 standard deviations for females. Good economic news of a similar magnitude has considerably less impact, reducing psychological distress by 0.16 and 0.35 standard deviations for males and females respectively.

Authors+Show Affiliations

Faculty of Business, University of New Brunswick, 100 Tucker Park Road, PO Box 5050, Saint John, New Brunswick, Canada E2L 4L5. Electronic address: bwatson@unb.ca.Department of Economics, Dalhousie University, 6214 University Avenue, PO Box 15000, Halifax, Nova Scotia, Canada B3H 4R2. Electronic address: Lars.Osberg@dal.ca.

Pub Type(s)

Journal Article

Language

eng

PubMed ID

31319364

Citation

Watson, Barry, and Lars Osberg. "Can Positive Income Anticipations Reverse the Mental Health Impacts of Negative Income Anxieties?" Economics and Human Biology, vol. 35, 2019, pp. 107-122.
Watson B, Osberg L. Can positive income anticipations reverse the mental health impacts of negative income anxieties? Econ Hum Biol. 2019;35:107-122.
Watson, B., & Osberg, L. (2019). Can positive income anticipations reverse the mental health impacts of negative income anxieties? Economics and Human Biology, 35, pp. 107-122. doi:10.1016/j.ehb.2019.05.003.
Watson B, Osberg L. Can Positive Income Anticipations Reverse the Mental Health Impacts of Negative Income Anxieties. Econ Hum Biol. 2019 Jun 29;35:107-122. PubMed PMID: 31319364.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - Can positive income anticipations reverse the mental health impacts of negative income anxieties? AU - Watson,Barry, AU - Osberg,Lars, Y1 - 2019/06/29/ PY - 2019/01/19/received PY - 2019/03/29/revised PY - 2019/05/15/accepted PY - 2019/7/19/pubmed PY - 2019/7/19/medline PY - 2019/7/19/entrez KW - Economic insecurity KW - Loss aversion KW - Mental health KW - Panel data KW - Prospect theory SP - 107 EP - 122 JF - Economics and human biology JO - Econ Hum Biol VL - 35 N2 - Prospect theory suggests losses are more influential than equivalent sized gains in individual level decision-making. Extending this literature, we use longitudinal National Population Health Survey data (2000-01 to 2010-11) to investigate whether experienced psychological distress impacts of greater economic insecurity for working age Canadians can be fully reversed by equal sized increases in security. Economic insecurity (security) is defined as the probability of an annual income decrease (increase) of 25 percent or more. Our identification strategy employs fixed effects estimation and a set of instruments to control for unobserved heterogeneity and reverse causality. Results suggest that an initial one standard deviation increase in economic insecurity predicts a rise in psychological distress of about 0.57 standard deviations for males and 0.54 standard deviations for females. Good economic news of a similar magnitude has considerably less impact, reducing psychological distress by 0.16 and 0.35 standard deviations for males and females respectively. SN - 1873-6130 UR - https://www.unboundmedicine.com/medline/citation/31319364/Can_positive_income_anticipations_reverse_the_mental_health_impacts_of_negative_income_anxieties L2 - https://linkinghub.elsevier.com/retrieve/pii/S1570-677X(19)30018-8 DB - PRIME DP - Unbound Medicine ER -