Wang-Sheng Lee

Fat chance! Obesity and the transition from unemployment to employment

This paper focuses on estimating the magnitude of any potential weight discrimination by examining whether obese job applicants in Germany get treated or behave differently from non-obese applicants. Based on two waves of rich survey data from the IZA Evaluation dataset, which includes measures that control for education, demographic characteristics, labor market history, psychological factors and health, we estimate differences in job search behavior and labor market outcomes between obese/overweight and normal weight individuals. Unlike other observational studies which are generally based on obese and non-obese individuals who might already be at different points in the job ladder (e.g., household surveys), in our data, individuals are newly unemployed and all start from the same point. The only subgroup we find in our data experiencing any possible form of negative labor market outcomes is obese women. Despite making more job applications and engaging more in job training programs, we find some indications that they experienced worse (or at best similar) employment outcomes than normal weight women. Obese women who found a job also had significantly lower wages than normal weight women.

Low-Paid Employment and Unemployment Dynamics in Australia

This article uses longitudinal data from the Household, Income and Labour Dynamics in Australia (or HILDA) Survey to examine the extent to which the relatively high rates of transition from low-paid employment into unemployment are the result of disadvantageous personal characteristics or are instead a function of low-paid work itself. Dynamic random effects probit models of the likelihood of unemployment are estimated. After controlling for unobserved heterogeneity and initial conditions, we find that, relative to high-paid employment, low-paid employment is associated with a higher risk of unemployment, but this effect is only significant among women. We also find only weak evidence that low-paid employment is a conduit for repeat unemployment.

The Australian firearms buyback and its effect on gun deaths

The 1996-1997 National Firearms Agreement (NFA) in Australia introduced strict gun laws, primarily as a reaction to the mass shooting in Port Arthur, Tasmania, in 1996, where 35 people were killed. Despite the fact that several researchers using the same data have examined the impact of the NFA on firearm deaths, a consensus does not appear to have been reached. In this paper, we reanalyze the same data on firearm deaths used in previous research, using tests for unknown structural breaks as a means to identifying impacts of the NFA. The results of these tests suggest that the NFA did not have any large effects on reducing firearm homicide or suicide rates.

Explaining the Female Black-White Obesity Gap: A Decomposition Analysis of Proximal Causes

There exist remarkably large differences in body weights and obesity prevalence between black and white women in the United States; and crucially, these differences are a significant contributor to black-white inequalities in health. In this article, we investigate the most proximal explanations for the weight gap: namely, differences in diet and exercise. More specifically, we decompose black-white differences in body mass index and waist-to-height ratio into components reflecting black-white differences in energy intake and energy expenditure. The analysis indicates that overconsumption is much more important than a lack of exercise in explaining the weight gap, which suggests that diet interventions will have to play a fundamental role if the weight gap between black and white women is to decline.

HEIGHT AND COGNITIVE FUNCTION AT OLDER AGES: IS HEIGHT A USEFUL SUMMARY MEASURE OF EARLY CHILDHOOD EXPERIENCES?

Previous research using US data suggests that height, as a marker for early investments in health, is associated with better cognitive functioning in later life, but this association disappears once education is controlled for. Using an English cohort of men and women older than 50 years, we find that the association between height and cognitive outcomes remains significant after controlling for education suggesting that height affects cognitive functioning not simply via higher educational attainment. Furthermore, the significant association between height and cognitive function remains even after controls for early life indicators have been included.

Height, aging and cognitive abilities across Europe

Previous research has found that as a marker of childhood circumstances, height is correlated with cognitive functioning at older ages. Using data from the Survey of Health, Ageing, and Retirement in Europe (SHARE) and about 17,000 respondents from 11 countries, we find that height is positively and significantly associated with cognitive functioning in later life despite controlling for a myriad of possible confounding factors. A 10 cm increase in height is associated with a 0.04 standard deviation increase in a summary cognitive score (mean 0.02, std. dev. 0.77). We find that being born in a country where the infant mortality rate at the time of birth is high has a negative and significant influence on cognitive functioning in later life. A 10% increase in the infant mortality rate is associated with a 0.1 standard deviation decrease in the summary cognitive score. We also find some evidence that height serves as a protective factor against age related deterioration in cognitive functioning. For persons of average stature, age related decreases in cognition scores are 3-5 percentage points smaller if they move up a quartile in the height distribution. Our results also suggest that there is a significant positive association between height and cognitive abilities across countries for this pre-1950 birth cohort of respondents, with correlations ranging from 0.4 to 0.8.

Childcare Use and Parents Labour Supply in Australia

Based on data which are representative of the Australian population in 2002, this paper first analyses the demand for and cost of formal and informal childcare for couple and sole-parent families, shedding light on factors which affect the demand for childcare. The predicted demand of formal childcare and the predicted costs of informal childcare arising from these models are then used to impute total childcare costs at different levels of labour supply. Finally, the predicted total costs are incorporated in the estimation procedure of structural labour supply models for couple and sole parent families. By making several extensions to the methodology adopted in Doiron and Kalb (2005a), who estimated similar models based on 1996 Australian data and which this paper largely replicates in terms of methodology, it is found that the average elasticities of labour supply with regard to the cost of childcare are quite similar to the earlier estimates. The elasticities remain at the lower end of the range found in the international literature with the exception of the elasticities for sole parents with preschool children and/or on relatively low wages.

Income Support and Stigma Effects for Young Australians

The central research question addressed in this article is how receipt of income support payments affects the well-being of youths. Using 1997-2004 panel data from a nationally representative survey of Australian youths, we attempt to estimate the size of the welfare stigma faced by Australian youths, where stigma is defined as the effect of welfare receipt on reported happiness levels. In analysing the determinants of happiness, we argue that it is important to control for dynamics and initial conditions. The latter arguably measures an initial setpoint of happiness which the psychology literature has found strong support for. In contrast to the general findings of the existence of a welfare stigma for adults, based on our results using dynamic panel probit models, our findings suggest that for Australian youths there is a small negative, but not statistically significant, stigma associated with welfare receipt. Copyright 2007 Bank of England.

Minimum Wages and Employment: Reconsidering the Use of a Time-Series Approach as an Evaluation Tool

The time-series approach used in the minimum wage literature essentially aims to estimate a treatment effect of increasing the minimum wage. In this paper, we employ a novel approach based on aggregate time-series data that allows us to determine if minimum wage changes have significant effects on employment. This involves the use of tests for structural breaks as a device for identifying discontinuities in the data which potentially represent treatment effects. In an application based on Australian data, the tentative conclusion is that the introduction of minimum wage legislation in Australia in 1997 and subsequent minimum wage increases appear not to have had any significant negative employment effects for teenagers.

The Labour Market Effects of Vocational Education and Training in Australia

We provide estimates of the effects of completing a Vocational Education and Training (VET) qualification on individual labour market outcomes, particularly on the probability of employment and on earnings. Estimates are provided for 1997, 2001 and 2005. The estimation methodology is based on matched comparisons of persons at each level of VET qualification among Year 12 completers and non-completers. We find that among Year 12 completers, there is little benefit from obtaining certificate level qualifications, but there are positive employment and earnings outcomes associated with obtaining diploma level qualifications. Among persons who did not complete Year 12, however, there are benefits from obtaining any kind of VET qualification, including the lower level Certificate I and II qualifications.