Francesco Renna

The effect of friends on adolescent body weight

Using the first wave of the National Longitudinal Study of Adolescent Health (Add Health) survey, this paper examines the influence of peers on adolescent weight. A peer group is defined as a close circle of friends that are identified by a respondent adolescent. After controlling for school fixed effects and for a number of individual, demographic and family characteristics, we find that a higher Body Mass Index (BMI) of close friends is correlated to a higher BMI of the respondent adolescent. However, after instrumental variable analysis is performed, the effect remains significant only among women. We also found that adolescents are more responsive to the body weight of their same gender friends.

Social Network and Weight Misperception Among Adolescents

It is recognized that public health intervention targeted toward changing lifestyle behaviors to reduce overweight status is a considerable challenge. It is important that individuals recognize their overweight status as a health risk in order for an effective change in lifestyle behaviors to occur, and growing evidence suggests that actual weight and perception of weight status often do not match, especially among adolescents. In this article, we explore the extent to which exposure to heavier peers and parents affects misperception of their own weight status by adolescents. Using data from a nationally representative sample of adolescents, we estimated instrumental variable models with school-level fixed effects to account for bidirectionality of peer influence and environmental confounders. Our results indicate that individuals who live in an environment that exposes them to overweight/obese parents and heavier peers tend to misperceive their weight status and think of themselves to be of lower weight than they actually are. Our analysis also revealed differential effects by gender and type of peers.

Direct and indirect effects of obesity on U.S. labor market outcomes of older working age adults

In this paper, we study the impact of obesity on labor market decisions of older working age adults in USA. Labor market outcomes are defined as any one of three: working; not working due to a disability; or not working due to an early retirement. Based on existing medical literature, we deduce that obesity can largely impact labor market decisions directly through impairment of bodily functions and indirectly by being a risk factor for various diseases like hypertension, arthritis, etc. We use data from the US Health and Retirement Study on older adults who were no more than 64 years of age in 2002. In our modeling effort, we employ two estimation strategies. We first estimate a model in which employment outcome in 2002 is a function of weight status in 1992. In the second strategy, controlling for time-invariant individual heterogeneity, we first consider the impact of obesity on bodily impairments and chronic illnesses; then, we consider the impact of such impairments and illnesses on labor market outcomes. Our results indicate that, for men, obesity class 2 and 3 increases both the probability of taking an early retirement and the incidence of disability by 1.5 percentage points. For women, we find that obesity class 2 and 3 increases the probability of taking an early retirement by 2.5 percentage points and the incidence of disability by 1.7 percentage points.

Alcohol Abuse, Alcoholism, and Labor Market Outcomes: Looking for the Missing Link

There is puzzling evidence that alcohol abuse and alcoholism reduce labor earnings but have no effect on either hours worked or the hourly wage. This study revisits the link between problem drinking and earnings using data from the 1989 and 1994 waves of the National Longitudinal Survey of Youth. Questions about problem drinking were keyed to a table of symptoms for alcohol abuse and alcoholism in the Diagnostic and Statistical Manual of Mental Disorders. The author finds no effects associated with alcohol abuse. In OLS regressions, alcoholism appears to have had negative effects on both labor market outcomes. In the lag variable and in the first difference regressions, alcoholisms negative effect on wages disappears, but its negative effect on hours of work remains, suggesting that the negative effect of alcoholism on earnings operates through reduced work hours. These results of the two-stage least squares are inconclusive.

Using Electronic Response Systems in Economics Classes

Abstract College instructors and students participated in a pilot project at the University of Akron to enhance student learning through the use of a common teaching pedagogy, peer instruction. The teaching pedagogy was supported by the use of technology, an electronic personal response system, which recorded student responses. The authors report their experiences in using this technology-enhanced teaching pedagogy and provide another example of an active and collaborative learning tool that instructors can use to move beyond “chalk and talk.” Preliminary survey results from students participating in this pilot project are also reported.

Plan choice, health insurance cost and premium sharing

We develop a model of premium sharing for firms that offer multiple insurance plans. We assume that firms offer one low quality plan and one high quality plan. Under the assumption of wage rigidities we found that the employees contribution to each plan is an increasing function of that plans premium. The effect of the other plans premium is ambiguous. We test our hypothesis using data from the Employer Health Benefit Survey. Restricting the analysis to firms that offer both HMO and PPO plans, we measure the amount of the premium passed on to employees in response to a change in both premiums. We find evidence of large and positive effects of the increase in the plans premium on the amount of the premium passed on to employees. The effect of the alternative plans premium is negative but statistically significant only for the PPO plans.

The Relationship between Communicable Diseases and FDI Flows: An Empirical Investigation

This paper focuses on the impact of communicable diseases, which affects the population health component of human capital on worldwide FDI flows. The model controls for endogeneity that can stem from the interconnected relationship between FDI, population health and per capita GDP. After controlling for this endogeneity, we find that communicable diseases have a statistically significant negative effect on FDI, which is 2 to 5 times larger than when using ordinary least squares. The results remain robust to alternative model specifications.

Technology in Support of Good Pedagogy: Electronic Response Systems and Peer Instruction in an Economics Classroom

College instructors and students participated in a pilot project at The University of Akron to enhance student learning through the use of a common teaching pedagogy, peer instruction. Peer instruction is a teaching pedagogy which can be used to engage students through activities that require each student to apply the core concepts being presented and then to explain these concepts to their fellow students. The teaching pedagogy was supported by the use of technology, an electronic response system, which recorded student responses. We report our experiences in using this technology enhanced teaching pedagogy and provide another example of an active and collaborative learning tool that instructors can use to move beyond chalk and talk. Preliminary results from student and instructor surveys are also reported.

Out of Pocket Costs and Health Insurance Take-Up Rates

BackgroundOver the first ten years of this century, the share of the US population covered by employer-sponsored health insurance plans experienced a significant decline. A decrease in the take-up rate accounts for about a quarter of this decline. Usually, the increasing share of the premium that is paid by workers is used to explain the decline in the take-up rate. However, in recent years the increase in copayments, deductible and coinsurance rate has far outpaced the increase in worker contribution.ObjectiveIn this study we analyze the impact of out-of-pocket (OOP) costs, which consist of both workers’ contribution toward the premium and expected expenditures, on the take-up rate for firms that offer multiple plan types.MethodsUsing data from the Employer Health Benefits Survey we estimated a pooled ordinary least squares and a fixed effects model. Since we have information about different types of health insurance plans offered by the firm, we derive the cross-price elasticity of coverage.ResultsOur fixed effects estimations suggest that workers respond to an increase in the out-of-pocket contributions for Health Maintenance Organization (HMO) plans by switching to PPO plans without impacting the overall take-up rate, while workers respond to increases in the out-of-pocket contribution for Preferred Provider Organization (PPO) plans by switching to HMO plans or dropping out of the group coverage.ConclusionIn general, we found that the estimated elasticities are too small to explain the overall drop in take-up rates even in light of the large increases in required worker contributions and expected expenditures. Still, we highlight the growing importance of expected expenditures in explaining take-up rates.

The veteran wage differential

ABSTRACT There is debate in the literature as to whether military service is rewarded in the economy and the extent to which veterans receive either a wage premium or penalty. In this paper, we take a new approach to this question by conducting a wage decomposition of the veteran wage differential and decomposing the wage distribution of veterans and civilians instead of focusing only on the standard wage gap analysis at the averages. We find the veteran wage differential is driven by observable factors such as education, occupation, and industry, but also by location choice, a factor that has been previously overlooked in the literature. At the average, we find white men experience a veteran penalty whereas black men and women experience a veteran premium consistent with the bridging hypothesis. Additionally, we find that as we move along the wage distribution for all demographic groups, the veteran premium tends to become a veteran penalty, even after accounting for selection into military service. However, once we account for selection, we find that the premium for veteran black men disappears.