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How does the business cycle affect eating habits?

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  • Dave, Dhaval M.
  • Kelly, Inas Rashad

Abstract

As economic expansions raise employment and wages, associated shifts in income and time constraints would be expected to also impact individuals’ health. This study utilizes information from the US Behavioral Risk Factor Surveillance System (1990–2009) to explore the relationship between the state unemployment rate and the consumption of various healthy and unhealthy foods in the United States. Estimates, based on fixed effects methodologies, indicate that unemployment is associated with reduced consumption of fruits and vegetables and increased consumption of “unhealthy” foods such as snacks and fast food. Heterogeneous responses are also identified through detailed sample stratifications and by isolating the effect for those predicted to be at highest risk of unemployment based on their socioeconomic characteristics. Among individuals predicted to be at highest risk of being unemployed, a one percentage point increase in the resident state’s unemployment rate is associated with a 3–6% reduction in the consumption of fruits and vegetables. The impact is somewhat higher among younger, low-educated, and married adults. Supplementary analyses also explore specific mediating pathways, and point to reduced family income and adverse mental health as significant channels underlying the procyclical nature of healthy food consumption.

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Bibliographic Info

Article provided by Elsevier in its journal Social Science & Medicine.

Volume (Year): 74 (2012)
Issue (Month): 2 ()
Pages: 254-262

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Handle: RePEc:eee:socmed:v:74:y:2012:i:2:p:254-262

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Keywords: Health; NutritionDiet; Unemployment; Business cycle; BRFSS; USA;

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References

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  1. Christopher J. Ruhm, 2004. "Macroeconomic Conditions, Health and Mortality," NBER Working Papers 11007, National Bureau of Economic Research, Inc.
  2. Dehejia, R.H. & Wahba, S., 1998. "Propensity Score Matching Methods for Non-Experimental Causal Studies," Discussion Papers 1998_02, Columbia University, Department of Economics.
  3. Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1265-1306, August.
  4. Evans, William N. & Moore, Timothy J., 2011. "The short-term mortality consequences of income receipt," Journal of Public Economics, Elsevier, vol. 95(11), pages 1410-1424.
  5. Christopher J. Ruhm, 2010. "Understanding Overeating and Obesity," NBER Working Papers 16149, National Bureau of Economic Research, Inc.
  6. Gerdtham, Ulf-G. & Ruhm, Christopher J., 2006. "Deaths rise in good economic times: Evidence from the OECD," Economics & Human Biology, Elsevier, vol. 4(3), pages 298-316, December.
  7. Christopher Ruhm, 2007. "A healthy economy can break your heart," Demography, Springer, vol. 44(4), pages 829-848, November.
  8. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  9. Christian, Thomas & Rashad, Inas, 2009. "Trends in U.S. food prices, 1950-2007," Economics & Human Biology, Elsevier, vol. 7(1), pages 113-120, March.
  10. Christopher J. Ruhm, 2000. "Are Recessions Good For Your Health?," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 617-650, May.
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Cited by:
  1. David G. Blanchflower & Andrew J. Oswald & Sarah Stewart-Brown, 2012. "Is Psychological Well-being Linked to the Consumption of Fruit and Vegetables?," NBER Working Papers 18469, National Bureau of Economic Research, Inc.

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