Heterogeneity in the intergenerational transmission of alcohol consumption: a quantile regression approach

This paper addresses the question of whether the effect of parental drinking on children's later consumption of alcohol - which is frequently found to be of positive sign - exhibits a certain pattern of heterogeneity. In particular, if this effect is more prominent in the upper tail than elsewhere in the distribution of children's alcohol consumption, conventional regression analyses that focus on the mean effect may substantially underrate parental drinking as a risk factor for children's later alcohol abuse. In our empirical application, we address this issue by applying censored quantile regression methods to German survey data. The supposed pattern of heterogeneity is indeed found in the data, at least for daily parental drinking. In addition, the intergenerational transmission of alcohol consumption exhibits gender-specific heterogeneity.     

Conjugal bereavement effects on health and mortality at advanced ages

Spousal bereavement at old ages may lead to dramatic changes in health. This paper investigates whether spousal bereavement has a causal effect on health and on mortality of the surviving spouse. We advance on the literature in two main ways. First, we model survivals of both spouses and the dynamic evolution of health jointly, allowing for potential endogeneity of timing of bereavement and health in explaining mortality of the surviving spouse. Second, we use a flexible non-parametric data dimensionality reduction method to thoroughly characterize health (using 22 health indicators) by a limited number of latent health indicators. This allows us to investigate the causal effect of spousal bereavement on mortality and on all aspects of health simultaneously. Our analyses are based on an ongoing longitudinal survey that follows a random sample of older individuals from 1992. We find strong instantaneous effects of bereavement on mortality and on certain aspects of health. Individuals lose on average 12% of residual life expectancy after conjugal bereavement. Conjugal bereavement affects the share of healthy years in residual lifetime, primarily because healthy years are replaced by years with chronic diseases. The strong direct effects of bereavement suggest that monitoring and/or interventions just after spousal bereavement are important for the length and quality of life of older bereaved individuals.     

Recession depression: Mental health effects of the 2008 stock market crash

Do sudden, large wealth losses affect mental health? We use exogenous variation in the interview dates of the 2008 Health and Retirement Study to assess the impact of large wealth losses on mental health among older U.S. adults. We compare cross-wave changes in wealth and mental health for respondents interviewed before and after the October 2008 stock market crash. We find that the crash reduced wealth and increased feelings of depression and use of antidepressant drugs, and that these effects were largest among respondents with high levels of stock holdings prior to the crash. These results suggest that sudden wealth losses cause immediate declines in subjective measures of mental health. However, we find no evidence that wealth losses lead to increases in clinically-validated measures of depressive symptoms or indicators of depression.     

Long-term health effects on the next generation of Ramadan fasting during pregnancy

Each year, many pregnant Muslim women fast during Ramadan. Using Indonesian cross-sectional data and building upon work of Almond and Mazumder (2011), I show that people who were prenatally exposed to Ramadan fasting have a poorer general health than others. As predicted by medical theory, this effect is especially pronounced among older people, who also more often report symptoms indicative of coronary heart problems and type 2 diabetes. Among exposed Muslims the share of males is lower, which is most likely caused by death before birth. I show that these effects are unlikely the result of common health shocks correlated to the occurrence of Ramadan, or of fasting mainly occurring among women who would have had unhealthier children anyway.     

The impact of legalized abortion on child health outcomes and abandonment. Evidence from Romania

We use household survey data and a unique census of institutionalized children to analyze the impact of abortion legalization in Romania. We exploit the lift of the abortion ban in December 1989, when communist dictator Ceausescu and his regime were removed from power, to understand its impact on children's health at birth and during early childhood and whether the lift of the ban had an immediate impact on child abandonment. We find insignificant estimates for health at birth outcomes and anthropometric z-scores at age 4 and 5, except for the probability of low birth weight which is slightly higher for children born after abortion became legal. Additionally, our findings suggest that the lift of the ban had decreased the number of abandoned children.     

Income and the utilization of long-term care services: evidence from the Social Security benefit notch

This paper estimates the impact of income on the long-term care utilization of elderly Americans using a natural experiment that led otherwise similar retirees to receive significantly different Social Security payments based on their year of birth. Using data from the 1993 and 1995 waves of the AHEAD, we estimate instrumental variables models and find that a positive permanent income shock lowers nursing home use but increases the utilization of paid home care services. We find some suggestive evidence that the effects are due to substitution of home care for nursing home utilization. The magnitude of these estimates suggests that moderate reductions in post-retirement income would significantly alter long-term utilization patterns among elderly individuals.     

Analyzing regional variation in health care utilization using (rich) household microdata

This paper exploits rich SOEP microdata to analyze state-level variation in health care utilization in Germany. Unlike most studies in the field of the Small Area Variation (SAV) literature, our approach allows us to net out a large array of individual-level and state-level factors that may contribute to the geographic variation in health care utilization. The raw data suggest that state-level hospitalization rates vary from 65 to 165 percent of the national mean. Ambulatory doctor visits range from 90 to 120 percent of the national mean. Interestingly, in the former GDR states, doctor visit rates are significantly below the national mean, while hospitalization rates lie above the national mean. The significant state-level differences vanish once we control for individual-level socio-economic characteristics, the respondents’ health status, their health behavior as well as supply-side state-level factors.     

The causal relationship between education, health and health related behaviour: evidence from a natural experiment in England

I exploit exogenous variation in the likelihood to obtain any sort of educational qualification between January- and February-born individuals for 13 academic cohorts in England. For these cohorts compulsory schooling laws interacted with the timing of the CSE and O-level exams to change the probability of obtaining a qualification by around 2-3 percentage points. I then use data on individuals born in these two months from the British Labour Force Survey and the Health Survey for England to investigate the effects of education on health using being February-born as an instrument for education. The results indicate neither an effect of education on various health related measures nor an effect on health related behaviour, e.g., smoking, drinking or eating various types of food.     

Institutions, health shocks and labour market outcomes across Europe

This paper investigates the relationship between health shocks and labour market outcomes in 9 European countries using the European Community Household Panel. Matching techniques are used to control for the non-experimental nature of the data. The results suggest that there is a significant causal effect from health on the probability of employment: individuals who incur a health shock are significantly more likely to leave employment and transit into disability. The estimates differ across countries, with the largest employment effects being found in The Netherlands, Denmark, Spain and Ireland, and the smallest in France and Italy. Differences in social security arrangements help to explain these cross-country differences.     

Life expectancy and human capital: Evidence from the international epidemiological transition

Exploiting preintervention variation in mortality from various infectious diseases, together with the time variation arising from medical breakthroughs in the late 1940s and the 1950s, this study examines how a large positive shock to life expectancy influenced the formation of human capital within countries during the second half of the 20th century. The results establish that the rise in life expectancy was behind a significant part of the increase in human capital over this period. According to the baseline estimate, for one additional year of life expectancy, years of schooling increase by 0.17 year. Moreover, the evidence suggests that declines in pneumonia mortality are the underlying cause of this finding, indicating that improved childhood health increases human capital investments.     

The role of education in complex health decisions: evidence from cancer screening

This paper uses data on real and perceived cancer risks and cancer screening behavior to test the allocative efficiency theory. Specifically, it explores whether the educated make better-informed health decisions. I propose that (1) when educated individuals are better informed, they are more likely to incorporate variation in risk factors when they report their personal cancer risk, and (2) as risk varies, the better educated will react more strongly by adopting preventive behaviors such as cancer screening. The results support for both predictions. Further, using data on attitudes toward breast health, I explore a possible mechanism: educated women are more receptive to scientific evidence and hold fewer nonscientific beliefs.     

Grossman's missing health threshold

We present a generalized solution to Grossman's model of health capital (1972), relaxing the widely used assumption that individuals can adjust their health stock instantaneously to an "optimal" level without adjustment costs. The Grossman model then predicts the existence of a health threshold above which individuals do not demand medical care. Our generalized solution addresses a significant criticism: the model's prediction that health and medical care are positively related is consistently rejected by the data. We suggest structural- and reduced-form equations to test our generalized solution and contrast the predictions of the model with the empirical literature.     

AIDS treatment and mental health: Evidence from Uganda

Increased access to antiretroviral therapy (ART) in developing countries over the last decade is believed to have contributed to reductions in HIV transmission and improvements in life expectancy. While numerous studies document the effects of ART on physical health and functioning, comparatively less attention has been paid to the effects of ART on mental health outcomes. In this paper we study the impact of ART on depression in a cohort of patients in Uganda entering HIV care. We find that 12 months after beginning ART, the prevalence of major and minor depression in the treatment group had fallen by approximately 15 and 27 percentage points respectively relative to a comparison group of patients in HIV care but not receiving ART. We also find some evidence that ART helps to close the well-known gender gap in depression between men and women.     

Unintended effects of reimbursement schedules in mental health care

We evaluate the introduction of a reimbursement schedule for self-employed mental health care providers in the Netherlands in 2008. The reimbursement schedule follows a discontinuous discrete step function—once the provider has passed a treatment duration threshold the fee is flat until a next threshold is reached. We use administrative mental health care data of the total Dutch population from 2008 to 2010. We find an “efficiency” effect: on the flat part of the fee schedule providers reduce treatment duration by 2 to 7% compared to a control group. However, we also find unintended effects: providers treat patients longer to reach a next threshold and obtain a higher fee. The data shows gaps and bunches in the distribution function of treatment durations, just before and after a threshold. About 11 to 13% of treatments are shifted over a next threshold, resulting in a cost increase of approximately 7 to 9%.     

How increasing medical access to opioids contributes to the opioid epidemic: Evidence from Medicare Part D

Drug overdoses involving opioid analgesics have increased dramatically since 1999, representing one of the United States’ top public health crises. Opioids have legitimate medical functions, but they are often diverted, suggesting a tradeoff between improving medical access and nonmedical abuse. We provide causal estimates of the relationship between the medical opioid supply and drug overdoses using Medicare Part D as a differential shock to the geographic distribution of opioids. Our estimates imply that a 10% increase in opioid medical supply leads to a 7.1% increase in opioid-related deaths among the Medicare-ineligible population, suggesting substantial diversion from medical markets.     

Effects of breast and colorectal cancer on labour market outcomes—Average effects and educational gradients

We estimate causal effects of breast and colorectal cancer on labour market outcomes 1–3 years after the diagnosis. Based on Danish administrative data we estimate average treatment effects on the treated by propensity score weighting methods using persons with no cancer diagnosis as control group. We conduct robustness checks using matching, difference-in-differences methods and an alternative control group of later cancer patients. The different methods give approximately the same results. Cancer increases the risks of leaving the labour force and receiving disability pension, and the effects are larger for the less educated. Effects on income are small and mostly insignificant. We investigate some of the mechanisms which may be important in explaining the educational gradient in effects of cancer on labour market attachment.     

Smoking persistence across countries: a panel data analysis

We provide new cross-country evidence on smoking persistence in Europe, which can be due to both true state dependence and individual unobserved heterogeneity. We distinguish between the two by using semi-parametric nonlinear panel data methods, applied to both the smoking participation and the cigarette consumption decision, which we allow to be correlated. We find that for both smoking decisions true state dependence is generally much smaller, but still important, when unobserved individual heterogeneity is accounted for, regardless of residential location. We uncover large differences in true state dependence across countries and relate them to discrepancies in regulations, social norms on and tolerance towards smoking, and awareness of its health risks.