IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v14y2005i12p1197-1215.html
   My bibliography  Save this article

Socioeconomic status, depression disparities, and financial strain: what lies behind the income-depression relationship?

Author

Listed:
  • Frederick J. Zimmerman

    (Department of Health Services, University of Washington, Seattle, USA)

  • Wayne Katon

    (Department of Psychiatry and Behavioral Sciences, University of Washington, Seattle, USA)

Abstract

Prior studies have consistently found the incidence and persistence of depression to be higher among persons with low incomes, but causal mechanisms for this relationship are not well understood. This study uses the National Longitudinal Survey of Youth 1979 cohort to test several hypotheses about the robustness of the depression-income relationship among adults. In regressions of depression symptoms on income and sociodemographic variables, income is significantly associated with depression. However, when controls for other economic variables are included, the effect of income is considerably reduced, and generally not significant. Employment status and the ratio of debts-to-assets are both highly significant for men and for women both above and below the median income. Fixed-effects estimates suggest that employment status and financial strain are causally related to depression, but income is not. Instrumental variable estimates suggest that financial strain may not lead to depression. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Frederick J. Zimmerman & Wayne Katon, 2005. "Socioeconomic status, depression disparities, and financial strain: what lies behind the income-depression relationship?," Health Economics, John Wiley & Sons, Ltd., vol. 14(12), pages 1197-1215.
  • Handle: RePEc:wly:hlthec:v:14:y:2005:i:12:p:1197-1215
    DOI: 10.1002/hec.1011
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/hec.1011
    File Function: Link to full text; subscription required
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ettner, Susan L., 1996. "New evidence on the relationship between income and health," Journal of Health Economics, Elsevier, vol. 15(1), pages 67-85, February.
    2. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    3. Windmeijer, F A G & Silva, J M C Santos, 1997. "Endogeneity in Count Data Models: An Application to Demand for Health Care," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 281-294, May-June.
    4. Romito, Patrizia & Saurel-Cubizolles, Marie-Josèphe & Lelong, Nathalie, 1999. "What makes new mothers unhappy: psychological distress one year after birth in Italy and France," Social Science & Medicine, Elsevier, vol. 49(12), pages 1651-1661, December.
    5. Vivian H. Hamilton & Philip Merrigan & Éric Dufresne, 1997. "Down and out: estimating the relationship between mental health and unemployment," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 397-406.
    6. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
    7. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
    8. Drentea, Patricia & Lavrakas, Paul J., 2000. "Over the limit: the association among health, race and debt," Social Science & Medicine, Elsevier, vol. 50(4), pages 517-529, February.
    9. Berndt, Ernst R. & Finkelstein, Stan N. & Greenberg, Paul E. & Howland, Robert H. & Keith, Alison & Rush, A. John & Russell, James & Keller, Martin B., 1998. "Workplace performance effects from chronic depression and its treatment," Journal of Health Economics, Elsevier, vol. 17(5), pages 511-535, October.
    10. Graetz, Brian, 1993. "Health consequences of employment and unemployment: Longitudinal evidence for young men and women," Social Science & Medicine, Elsevier, vol. 36(6), pages 715-724, March.
    11. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    12. Hope, Steven & Power, Chris & Rodgers, Bryan, 1999. "Does financial hardship account for elevated psychological distress in lone mothers?," Social Science & Medicine, Elsevier, vol. 49(12), pages 1637-1649, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Annelle Bellony & Alejandro Hoyos & Hugo Nopo, 2010. "Gender Earnings Gaps in the Caribbean: Evidence from Barbados and Jamaica," Research Department Publications 4683, Inter-American Development Bank, Research Department.
    2. Jason Fletcher, 2013. "Adolescent Depression and Adult Labor Market Outcomes," Southern Economic Journal, Southern Economic Association, vol. 80(1), pages 26-49, July.
    3. Natalia Melgar & Máximo Rossi, 2012. "A Cross‐Country Analysis of the Risk Factors for Depression at the Micro and Macro Levels," American Journal of Economics and Sociology, Wiley Blackwell, vol. 71(2), pages 354-376, April.
    4. repec:eee:cysrev:v:84:y:2018:i:c:p:168-175 is not listed on IDEAS
    5. Hojman, Daniel A. & Miranda, Álvaro & Ruiz-Tagle, Jaime, 2016. "Debt trajectories and mental health," Social Science & Medicine, Elsevier, vol. 167(C), pages 54-62.
    6. Stuart Watson & Bonnie Barber & Suzanne Dziurawiec, 2015. "The Role of Economizing and Financial Strain in Australian University Students’ Psychological Well-Being," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 421-433, September.
    7. Johanna Catherine Maclean & Douglas A. Webber & Michael T. French & Susan L. Ettner, 2015. "The Health Consequences of Adverse Labor Market Events: Evidence from Panel Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(3), pages 478-498, July.
    8. Smith, James Patrick & Smith, Gillian C., 2010. "Long-term economic costs of psychological problems during childhood," Social Science & Medicine, Elsevier, vol. 71(1), pages 110-115, July.
    9. Arber, Sara & Fenn, Kirsty & Meadows, Robert, 2014. "Subjective financial well-being, income and health inequalities in mid and later life in Britain," Social Science & Medicine, Elsevier, vol. 100(C), pages 12-20.
    10. Lee, Miaw-Chwen & Huang, Nicole, 2015. "Changes in self-perceived economic satisfaction and mortality at old ages: Evidence from a survey of middle-aged and elderly adults in Taiwan," Social Science & Medicine, Elsevier, vol. 130(C), pages 1-8.
    11. Hanandita, Wulung & Tampubolon, Gindo, 2014. "Does poverty reduce mental health? An instrumental variable analysis," Social Science & Medicine, Elsevier, vol. 113(C), pages 59-67.
    12. Daniel Hojman & Alvaro Miranda & Jaime Ruiz-Tagle, 2013. "Over Indebtedness and Depression: Sad Debt or Sad Debtors?," Working Papers wp385, University of Chile, Department of Economics.
    13. Hania Wu & Tony Tam, 2015. "Economic Development and Socioeconomic Inequality of Well-Being: A Cross-Sectional Time-Series Analysis of Urban China, 2003–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 401-425, November.
    14. Lahelma, Eero & Laaksonen, Mikko & Martikainen, Pekka & Rahkonen, Ossi & Sarlio-Lähteenkorva, Sirpa, 2006. "Multiple measures of socioeconomic circumstances and common mental disorders," Social Science & Medicine, Elsevier, vol. 63(5), pages 1383-1399, September.
    15. Manuel, Jennifer I. & Martinson, Melissa L. & Bledsoe-Mansori, Sarah E. & Bellamy, Jennifer L., 2012. "The influence of stress and social support on depressive symptoms in mothers with young children," Social Science & Medicine, Elsevier, vol. 75(11), pages 2013-2020.
    16. Bethany G. Everett & Jarron Saint Onge & Stefanie Mollborn, 2016. "Effects of Minority Status and Perceived Discrimination on Mental Health," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 35(4), pages 445-469, August.
    17. Ahnquist, Johanna & Wamala, Sarah P. & Lindstrom, Martin, 2012. "Social determinants of health – A question of social or economic capital? Interaction effects of socioeconomic factors on health outcomes," Social Science & Medicine, Elsevier, vol. 74(6), pages 930-939.
    18. Vicki L. Bogan & Angela R. Fertig, 2013. "Portfolio Choice and Mental Health," Review of Finance, European Finance Association, vol. 17(3), pages 955-992.
    19. Dahal, Arati & Fertig, Angela, 2013. "An econometric assessment of the effect of mental illness on household spending behavior," Journal of Economic Psychology, Elsevier, vol. 37(C), pages 18-33.
    20. Irina Grafova, 2011. "Financial Strain and Smoking," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 327-340, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:14:y:2005:i:12:p:1197-1215. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.