Sonya Kostova Huffman

Linkages among welfare, food assistance programmes and labour supply: evidence from the survey of programme dynamics

At the centre of the debate on welfare reform is whether incentives-based systems help poor families move out of poverty into jobs. Recent data from the first Survey of Programme Dynamics longitudinal and the 1998 experimental data files allow evaluation of the interaction among the Food Stamp Programme (FSP), Temporary Assistance for Needy Families (TANF) programme and labour force participation under different programme design and economic conditions. A model that incorporates jointly determined programmes participation and work decisions is applied to a sample of working age, lower income and asset households. Participation in TANF increases the probability of FSP participation and decreases the probability of being in the work force; working decreases the probability of receiving food stamps. Work, TANF, and FSP participation are related, and TANF and FSP participation rates among poor households who are potentially eligible for TANF are sensitive to changes in programme parameters; as expected, labour force participation is affected by the general economic conditions.

An empirical analysis of joint decisions on labour supply and welfare participation

Economic and welfare programme factors affect the wellbeing of low-income families and their labour supply decisions. This study uses recent data from the US Survey of Income and Programme Participation. A nested logit model is estimated to explain the joint decisions to participate in Temporary Assistance for Needy Families (TANF) and the labour market for the population of families potentially eligible for TANF. The empirical findings indicate that higher wages increase labour and decrease welfare programme participation; an increase in non-labour income decreases both labour market and welfare participation.

Consumer demand for cholesterol-lowering enhanced margarine products

Abstract The development and introduction of nutritionally enhanced margarines in the mid-1990s offered the opportunity to improve public health through the use of a cholesterol-lowering food product. Product approval in the USA followed that in Europe. The public approval and market acceptance of the nutritionally enhanced product illustrate the challenges faced by offering improved health attributes through food product innovation. Although the product Benecol received public endorsement and was relatively quickly accepted by Finnish consumers, public acceptance has been slower in the USA. Our study traces consumer response to the introduction of nutritionally enhanced margarine products in the US market. Household scanner data allow estimation of hedonic price functions and a probit model on the choice of the health-promoting product attribute. US consumers of the enhanced margarine products place a relatively high value on the cholesterol-lowering attribute, although a relatively small share of households purchase the products that include it.

Empirical tests of impacts of rationing: the case of Poland in transition

This study tests hypotheses derived from the theory of rationing using data for Polish households during the transition. There are six commodity groups and virtual prices are derived for rationed goods. The evidence is consistent with the theory: larger own-price elasticities for non-rationed goods after the reform, increased complementarity and decreased substitutability.

Body weight and labour market outcomes in Post-Soviet Russia

Purpose - – The purpose of this paper is to focus on the impacts of overweight and obesity on the probability of employment, wages, and the incidence of sick-leave days by gender, in Russia, over the transition period, 1994-2005. Design/methodology/approach - – The authors uses panel data and appropriate instrumental variables techniques to estimate a set of three models. Findings - – The results show a linear negative effect of body mass index (BMI) on probability of employment for women and positive effect for men. The authors did not find evidence of wage penalty for higher BMI, a result different from findings of several studies on developed market economies. There is also positive impact of BMI on the number of work days missed due to health problems for women. Originality/value - – The results derived in transition context add evidence to the growing obesity and labour market outcomes literature emphasising the relative importance of the labour supply side compared to the demand side. The policy implications of our study are gender specific.

The Rise of Obesity in Transition Economies: Theory and Evidence from the Russian Longitudinal Monitoring Survey

This study integrates theoretical and empirical models to facilitate understanding of human obesity and the factors contributing to rising obesity in Russia during the transition from a planned to a market economy. Recent individual level data from the Russian Longitudinal Monitoring Survey for 1994 and 2004 show that diet/caloric intake, smoking, gender and education are important determinants of obesity in Russia. Empirical results strongly support our model for production of health and demand for inputs in the health production function. The analysis provides information on dietary patterns and other determinants of obesity which is essential for formulation and implementation of effective policies designed to improve overall nutritional wellbeing and reduce obesity and mortality of the population. Interventions, which enhance education toward healthy lifestyles and healthy diet, could play a vital role in preventing obesity in Russia.

Re-evaluation of Welfare Changes during the Transition in Poland

The costs of shortages/rationing are not captured by standard consumer price indices. Thus the change in real GDP per capita is an over-estimate of welfare losses in transition economies. In this study virtual prices are used to calculate new cost of living indices, making it possible to construct more accurate pre-reform and post-reform welfare comparisons. The results for Poland using virtual prices show 62-84% decline in welfare over the transition 1987-92. This welfare loss is approximately one-third of the value obtained using actual prices.

Evaluation of Consumption and Welfare Changes Under Economic Transition in Rural Poland

The consumption and welfare changes under economic transition in rural Poland are evaluated using virtual prices for rationed goods in the prereform period. Rural households responded to price and real income changes during the transition from a centrally planned to a market economy. The actual changes in consumption patterns are consistent with the elasticity analysis. The results for rural Poland show a 74-86 percent decline in real household welfare, which is approximately one-half the value obtained using the actual prices. Compared with previous studies, the welfare loss for rural residents is slightly higher than the average for Poland.