Disability and Multi-State Labour Force Choices with State Dependence

Using data from the first 8 waves of the Household Income and Labour Dynamics in Australia (HILDA) Survey, this article adds to existing knowledge of how pathways to retirement are decided. Two complementary estimation strategies are used to model the labor force transitions of mature age men and women. First, a standard multinomial logit model is used to determine the characteristics associated with specific patterns of labor force participation. Second, a dynamic mixed multinomial logit model is used to estimate labor market states in each year. Both approaches provide new evidence about coordinated retirement among mature age couples, not only in the timing of retirement but how the transition to retirement is made. The results also provide new evidence about the different effects of specific components of household wealth on how the transition to retirement is made. Controlling for unobserved heterogeneity in the dynamic multinomial model confirms the existence of true state dependence in the labor force states of mature age men and women. This implies that policies aimed at encouraging older workers to delay retirement will be more effective in boosting mature age participation than policies aimed at encouraging older workers back into the workforce after a period of nonparticipation.

BackgroundPoor health increases the likelihood of experiencing poverty by reducing a person’s ability to work and imparting costs associated with receiving medical treatment. Universal health care is a means of protecting against the impoverishing impact of high healthcare costs. This study aims to document the recent trends in the amount paid by Australian households out-of-pocket for healthcare, identify any inequalities in the distribution of this expenditure, and to describe the impact that healthcare costs have on household living standards in a high-income country with a long established universal health care system. We undertook this analysis using a longitudinal, nationally representative dataset – the Household Income and Labour Dynamics in Australia Survey, using data collected annually from 2006 to 2014. Out of pocket payments covered those paid to health practitioners, for medication and in private health insurance premiums; catastrophic expenditure was defined as spending 10% or more of household income on healthcare.ResultsAverage total household expenditure on healthcare items remained relatively stable between 2006 and 2014 after adjusting for inflation, changing from $3133 to $3199. However, after adjusting for age, self-reported health status, and year, those in the lowest income group (decile one) had 15 times the odds (95% CI, 11.7–20.8) of having catastrophic health expenditure compared to those in the highest income group (decile ten). The percentage of people in income decile 2 and 3 who had catastrophic health expenditure also increased from 13% to 19% and 7% to 13% respectively.ConclusionsOngoing monitoring of out of pocket healthcare expenditure is an essential part of assessing health system performance, even in countries with universal health care.

All-cause mortality and the time-varying effects of psychosocial work stressors: A retrospective cohort study using the HILDA survey.

Socioeconomic Assimilation and Wealth Accumulation of Migrants in Australia

The gendered division of labour contributes to differences in the way time is spent and experienced by women and men. Time spent in paid and unpaid labour is associated with sleep outcomes, therefore, we examined (i) the relationships between time use and time pressure, and sleep, and (ii) whether these relationships were modified by gender. Adults from the Household Income and Labour Dynamics in Australia survey were included in the analysis (N = 7611). Two measures of time use (total time commitments, ≥50% of time spent in paid work) were calculated based on estimates of time spent in different activities. One measure of time pressure was also included. Three sleep outcomes (quality, duration and difficulties) were examined. Logistic regression and effect measure modification analyses were employed. Total time commitments were associated with sleep duration, whereby more hours of total time commitments were associated with an increase in the odds of reporting <7h sleep. Gender was an effect modifier of the association between ≥50% of time spent in paid work and (i) sleep duration on the multiplicative scale, and (ii) sleep difficulties on the multiplicative and additive scales. Men who spent <50% of time in paid work reported more sleep difficulties than men who spent ≥50% of time spent in paid work. Feeling time pressured was associated with poor sleep quality, short sleep duration and sleep difficulties. Time use and time pressure were associated with sleep, with some effects experienced differently for men and women.

ABSTRACTIntroductionAlthough occupational stressors are acknowledged as contributors to high‐risk alcohol consumption, their impact relative to sociodemographic and health factors is not well understood. This study investigated how occupational stressors compare with sociodemographic and health factors in influencing three high‐risk drinking patterns among Australian workers.MethodsThis analysis included 26,255 employed individuals (48.2% female) drawn from 23 waves (2001–2023) of the Household Income and Labour Dynamics in Australia survey. The study conducted multivariate regressions on three types of high‐risk drinking: (i) high‐risk drinking across the week; (ii) single‐occasion high‐risk drinking; and (iii) any high‐risk drinking.ResultsWorking more than full‐time hours was associated with higher odds of high‐risk drinking across the week (OR 1.12, 95% CI [1.05, 1.19]). Shift workers were associated with single‐occasion high‐risk drinking (OR 1.09, 95% CI [1.02, 1.16]). Desiring to work more hours was associated with single‐occasion high‐risk drinking (OR 1.16, 95% CI [1.09, 1.24]). Workers aged 18–29 years had a twofold increased odds of any high‐risk drinking (OR 1.99, 95% CI [1.77, 2.23]), while women had decreased odds (OR 0.11, 95% CI [0.10, 0.13]). Smoking was the modifiable risk factor most strongly associated with any high‐risk drinking (OR 2.80, 95% CI [2.60, 3.02]).Discussion and ConclusionsThis analysis found that occupational factors were associated with high‐risk drinking; however, their impact was less substantial than sociodemographic and health factors. Interventions targeting risk factors among high‐prevalence groups and health promotion campaigns highlighting the health risks associated with high‐risk alcohol consumption are warranted.

This paper analyses changes in the employment rates and hours worked of mothers with pre-school age children in Australia between 2002 and 2008, using data from Waves 2 to 8 of the Household Income and Labour Dynamics in Australia survey, a large-scale longitudinal survey of the household population. The employment rate of mothers with young children rose considerably over the period considered. However, the hours per employed mother changed relatively little on average. There are significant differentials in the mother’s employment rate by the number and ages of children, and by mother’s education, marital status and birthplace. Hours worked per employed mother vary with the mother’s age, education, marital status and birthplace, by the youngest child’s age, and the number of children under five. The paper pays particular attention to the change in these differentials over time. It finds the change over time for the mother’s employment rate varies significantly by the number of children, while for the hours worked it varies by mother’s education and marital dissolution, and the age of the youngest child. The implications of these patterns are discussed.

Smoking Inequality Trends by Disability and Income in Australia, 2001 to 2020

Young adults staying with parents is definitely a growing housing tenure in Australia. This paper, for the first time, unearths individual-level housing tenure choices of young Australians from the household-level data of owning/renting from the 2017 Household Income and Labour Dynamics in Australia survey. In addition to owner-occupation and private rental, the paper explores the influence of personal characteristics on two types of multigenerational co-residence: young adults who live with parents rent-free and pay board. The results show that, in Australia, young women are more independent in their housing tenure choices (i.e., owning and renting) in comparison to young men. There is a growing trend towards mature and high-earning young people living with parents for free, which might be explained by the aim of saving money to buy a house or investment property and also care arrangements for their elderly parents. Marital status has also a significant effect on housing tenure choices. Never married young adults prefer to live with parents either for free or pay board; while those divorced/separated or widowed prefer to rent privately to maintain their residential independency, after life circumstances changed. This study informs policy makers to provide more support to young adults in a fully or partly independent housing tenure (renting and paying board) in assisting them to climb up the housing career ladder—becoming a homeowner.

Smoking and inadequate housing: Results from an Australian national survey

Migrants experience various stressors at different stages of migration based on their country of origin, ethnic backgrounds, migration context and host country. Employment is one important post-settlement factor associated with mental health among migrant groups. The study investigates whether the country of origin modifies the association between employment and mental health for Australian migrants. Nineteen waves of data from the Household Income and Labour Dynamics in Australia Survey were used. Using fixed-effects regression, we examined the effects of within-person changes in employment status on mental health outcomes as measured by the Mental Health Inventory (MHI-5), controlling for time-varying confounders and stratified by sex and examined effect modification by country of origin. The relationship between unemployment and mental health was modified by country of origin for men but not women. Unemployed men from Asian (β = -4.85, p < 0.001), African and Middle Eastern (β = -3.61, p < 0.05) countries had lower mental health scores compared to employed Australian-born men. For men, there was evidence of effect modification of the association between employment and mental health by country of origin, with the combined effect of being unemployed and being a migrant from an Asian country was almost three points lower than the summed independent risks of these factors (β = -2.72; p = 0.01). Also, for men, the combined mental health effect of not being in the labour force and coming from a non-English-speaking European country was greater than the summed effects of these factors (β = -2.33; p < 0.001). Tailored employment-support programmes may be beneficial for migrants from ethnic minorities, particularly those from Asian, African and Middle Eastern countries in Australia. Further research is needed to understand why the mental health of migrant men from these countries is particularly vulnerable to unemployment.

An increasing number of studies suggest that the relationship between higher education and subjective well-being (SWB) is either insignificant or negative. Most of these studies, however, use life satisfaction as a proxy for SWB. In this study, using longitudinal data from the Household Income and Labor Dynamics in Australia survey, I examine the link between higher education and three different measures of subjective well-being: life satisfaction and its different sub-domains (evaluative), positive and negative affect (hedonic), and engagement and purpose (eudaimonic). Three substantial results emerge: (1) people with higher education are more likely to report higher levels of eudaimonic and hedonic SWB, i.e., they view their lives as more meaningful and experience more positive emotions and less negative ones; (2) people with higher education are satisfied with most life domains (financial, employment opportunities, neighborhood, local community, children at home) but they report lower satisfaction with the amount of free time they have; (3) the positive effect of higher education is increasing, but at a decreasing rate; the SWB gains from obtaining a graduate degree are much lower (on the margin) compared to getting a college degree.

BackgroundLoneliness and social isolation are increasingly recognised as global public health threats, meaning that reliable and valid measures are needed to monitor these conditions at a population level. We aimed to determine if robust and practical scales could be derived for conditions such as loneliness and social isolation using items from a national survey.MethodsWe conducted psychometric analyses of ten items in two waves of the Household, Income and Labour Dynamics in Australia Survey, which included over 15,000 participants. We used the Hull method, exploratory structural equation modelling, and multidimensional item response theory analysis in a calibration sample to determine the number of factors and items within each factor. We cross-validated the factor structure using confirmatory factor analysis in a validation sample. We assessed construct validity by comparing the resulting sub-scales with measures for psychological distress and mental well-being.ResultsCalibration and cross-validation consistently revealed a three-factor model, with sub-scales reflecting constructs of loneliness and social isolation. Sub-scales showed high reliability and measurement invariance across waves, gender, and age. Construct validity was supported by significant correlations between the sub-scales and measures of psychological distress and mental health. Individuals who met threshold criteria for loneliness and social isolation had consistently greater odds of being psychologically distressed and having poor mental health than those who did not.ConclusionsThese derived scales provide robust and practical measures of loneliness and social isolation for population-based research.

We study associations among women’s current marital status, past marital history, and later-life labor force participation. We first document these relationships using data from the 1986 to 2008 waves of the Survey of Income and Program Participation (SIPP). We then exploit variation in laws governing divorce across states and over time to quasi-experimentally identify how the timing of an exogenous increase in divorce risk (that is, the introduction of unilateral divorce) impacts employment and retirement outcomes for older women. The spread of unilateral divorce, we find, was associated with cross-cohort differences in the probability of divorce over the lifecycle. For women with a low risk of divorce, later exposure to unilateral divorce significantly increases the probability of full-time employment later in life, and significantly decreases retirement wealth. This finding suggests that ever-divorced women are working longer remedially; when a woman unexpectedly divorces later in life, she is less likely to have engaged in precautionary human capital investment and might have to work longer to increase her assets prior to retirement. For women with a high risk of divorce, later exposure to increases in divorce risk does not impact full-time employment after age 50 but is positively associated with investment in education post marriage. These women invest more in their own human capital within marriage, which might insure them against increases in exogenous divorce risk at later ages.

While self-reported life satisfaction (LS) has become an important research and policy tool, much debate still surrounds the question of what causes LS to change in certain individuals, while not in others. Set-point theory argues that individuals have a relatively resilient LS or "set point" (i.e. there is a certain LS level that individuals return to even after major life events). Here, we describe the extent to which LS varies over time for 12,643 individuals living in Australia who participated in at least eight annual waves of the Household Income and Labour Dynamics in Australia (HILDA) Survey. We use the standard deviation (SD) of year-on-year LS by individuals (SD of LS) as a measure of instability and an inverse proxy for resilience. We then model SD of LS as the dependent variable against average LS scores over time by individual, Big Five personality scores by individual, the number of waves the individual participated in, and other control variables. We found that SD of LS was higher (lower resilience) in participants with a lower average LS and greater degrees of extraversion and agreeableness. Set-point theory thus applies more to individuals whose average LS is already high and whose personality traits facilitate higher resilience. We were able to explain about 35% of the stability in LS. These results are critical in designing policies aimed at improving people's lives.