IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v27y2018i1p189-208.html
   My bibliography  Save this article

Out of sight but not out of mind: Home countries' macroeconomic volatilities and immigrants' mental health

Author

Listed:
  • Ha Trong Nguyen
  • Luke Brian Connelly

Abstract

We provide the first empirical evidence that better economic performances by immigrants' countries of origin, as measured by lower consumer price index (CPI) or higher gross domestic product, improve immigrants' mental health. We use an econometrically‐robust approach that exploits exogenous changes in macroeconomic conditions across immigrants' home countries over time and controls for immigrants' observable and unobservable characteristics. The CPI effect is statistically significant and sizeable. Furthermore, the CPI effect diminishes as the time since emigrating increases. By contrast, home countries' unemployment rates and exchange rate fluctuations have no impact on immigrants' mental health.

Suggested Citation

  • Ha Trong Nguyen & Luke Brian Connelly, 2018. "Out of sight but not out of mind: Home countries' macroeconomic volatilities and immigrants' mental health," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 189-208, January.
  • Handle: RePEc:wly:hlthec:v:27:y:2018:i:1:p:189-208
    DOI: 10.1002/hec.3532
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.3532
    Download Restriction: no

    File URL: https://libkey.io/10.1002/hec.3532?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rajeev Dehejia & Adriana Lleras-Muney, 2004. "Booms, Busts, and Babies' Health," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 1091-1130.
    2. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    3. Ruhm, Christopher J., 2005. "Healthy living in hard times," Journal of Health Economics, Elsevier, vol. 24(2), pages 341-363, March.
    4. Antonio Spilimbergo & Gordon H. Hanson, 1999. "Illegal Immigration, Border Enforcement, and Relative Wages: Evidence from Apprehensions at the U.S.-Mexico Border," American Economic Review, American Economic Association, vol. 89(5), pages 1337-1357, December.
    5. French, Michael T. & Gumus, Gulcin, 2014. "Macroeconomic fluctuations and motorcycle fatalities in the U.S," Social Science & Medicine, Elsevier, vol. 104(C), pages 187-193.
    6. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
    7. Erdal Tekin & Chandler McClellan & Karen Jean Minyard, 2013. "Health and Health Behaviors during the Worst of Times," NBER Working Papers 19234, National Bureau of Economic Research, Inc.
    8. Chad Cotti & Richard A. Dunn & Nathan Tefft, 2015. "The Dow is Killing Me: Risky Health Behaviors and the Stock Market," Health Economics, John Wiley & Sons, Ltd., vol. 24(7), pages 803-821, July.
    9. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    10. Frijters, Paul & Johnston, David W. & Shields, Michael A. & Sinha, Kompal, 2015. "A lifecycle perspective of stock market performance and wellbeing," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 237-250.
    11. repec:pri:cheawb:adriana_booms.pdf is not listed on IDEAS
    12. Le, Huong & Nguyen, Ha, 2015. "Intergenerational transmission in health: Causal estimates from fixed effects instrumental variables models for two cohorts of Australian children," MPRA Paper 68175, University Library of Munich, Germany.
    13. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 963-1002.
    14. Paul Frijters & David W. Johnston & Michael A. Shields, 2011. "Life Satisfaction Dynamics with Quarterly Life Event Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 190-211, March.
    15. Ásgeirsdóttir, Tinna Laufey & Corman, Hope & Noonan, Kelly & Ólafsdóttir, Þórhildur & Reichman, Nancy E., 2014. "Was the economic crisis of 2008 good for Icelanders? Impact on health behaviors," Economics & Human Biology, Elsevier, vol. 13(C), pages 1-19.
    16. Huong Thu Le & Ha Trong Nguyen, 2018. "The Impact of Maternal Mental Health Shocks on Child Health: Estimates from Fixed-Effects Instrumental Variables Models for Two Cohorts of Australian Children," American Journal of Health Economics, University of Chicago Press, vol. 4(2), pages 185-225, Spring.
    17. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    18. Alpaslan Akay & Olivier Bargain & Klaus F. Zimmermann, 2017. "Home Sweet Home?: Macroeconomic Conditions in Home Countries and the Well-Being of Migrants," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 351-373.
    19. Nguyen, Ha Trong & Connelly, Luke Brian, 2014. "The effect of unpaid caregiving intensity on labour force participation: Results from a multinomial endogenous treatment model," Social Science & Medicine, Elsevier, vol. 100(C), pages 115-122.
    20. Deckers Thomas & Falk Armin & Schildberg-Hörisch Hannah, 2016. "Nominal or Real? The Impact of Regional Price Levels on Satisfaction with Life," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1337-1358, September.
    21. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 617-650.
    22. Charles, Kerwin Kofi & DeCicca, Philip, 2008. "Local labor market fluctuations and health: Is there a connection and for whom?," Journal of Health Economics, Elsevier, vol. 27(6), pages 1532-1550, December.
    23. Ruhm, Christopher J., 2003. "Good times make you sick," Journal of Health Economics, Elsevier, vol. 22(4), pages 637-658, July.
    24. Ruhm, Christopher J. & Black, William E., 2002. "Does drinking really decrease in bad times?," Journal of Health Economics, Elsevier, vol. 21(4), pages 659-678, July.
    25. Arash Nekoei, 2013. "Immigrants' Labor Supply and Exchange Rate Volatility," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 144-164, October.
    26. Heinz Welsch, 2007. "Macroeconomics and life satisfaction: Revisiting the "misery index"," Journal of Applied Economics, Universidad del CEMA, vol. 10, pages 237-251, November.
    27. Nguyen, Ha & Duncan, Alan, 2015. "Macroeconomic fluctuations in home countries and immigrants’ well-being: New evidence from Down Under," MPRA Paper 69593, University Library of Munich, Germany, revised Feb 2016.
    28. Nguyen, Ha Trong & Duncan, Alan S, 2017. "Exchange rate fluctuations and immigrants' labour market outcomes: New evidence from Australian household panel data," Journal of International Economics, Elsevier, vol. 105(C), pages 174-186.
    29. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August.
    30. Paul Frijters & David W. Johnston & Michael A. Shields, 2014. "The Effect Of Mental Health On Employment: Evidence From Australian Panel Data," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1058-1071, September.
    31. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003. "The Macroeconomics of Happiness," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 809-827, November.
    32. repec:pri:cheawb:adriana_booms is not listed on IDEAS
    33. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Other publications TiSEM 7ec34a6c-1d84-4052-971c-d, Tilburg University, School of Economics and Management.
    34. Huong Thu Le & Ha Trong Nguyen, 2017. "Parental health and children's cognitive and noncognitive development: New evidence from the longitudinal survey of Australian children," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1767-1788, December.
    35. Tekin, Erdal & McClellan, Chandler & Minyard, Karen Jean, 2013. "Health and Health Behaviors during the Worst of Times: Evidence from the Great Recession," IZA Discussion Papers 7538, Institute of Labor Economics (IZA).
    36. McInerney, Melissa & Mellor, Jennifer M. & Nicholas, Lauren Hersch, 2013. "Recession depression: Mental health effects of the 2008 stock market crash," Journal of Health Economics, Elsevier, vol. 32(6), pages 1090-1104.
    37. Powdthavee, Nattavudh & van den Berg, Bernard, 2011. "Putting different price tags on the same health condition: Re-evaluating the well-being valuation approach," Journal of Health Economics, Elsevier, vol. 30(5), pages 1032-1043.
    38. Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
    39. Ruhm, Christopher J., 2015. "Recessions, healthy no more?," Journal of Health Economics, Elsevier, vol. 42(C), pages 17-28.
    40. Janet Currie & Valentina Duque & Irwin Garfinkel, 2015. "The Great Recession and Mothers' Health," Economic Journal, Royal Economic Society, vol. 125(588), pages 311-346, November.
    41. Frey, Bruno S & Stutzer, Alois, 2000. "Happiness, Economy and Institutions," Economic Journal, Royal Economic Society, vol. 110(466), pages 918-938, October.
    42. Carol Graham & Stefano Pettinato, 2001. "Happiness, Markets, and Democracy: Latin America in Comparative Perspective," Journal of Happiness Studies, Springer, vol. 2(3), pages 237-268, September.
    43. Ruprah, Inder J. & Luengas, Pavel, 2011. "Monetary policy and happiness: Preferences over inflation and unemployment in Latin America," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 59-66, February.
    44. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-1178, September.
    45. Dean Yang, 2006. "Why Do Migrants Return to Poor Countries? Evidence from Philippine Migrants' Responses to Exchange Rate Shocks," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 715-735, November.
    46. Justin Wolfers, 2003. "Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well‐Being," International Finance, Wiley Blackwell, vol. 6(1), pages 1-26, March.
    47. Groot, Wim, 2000. "Adaptation and scale of reference bias in self-assessments of quality of life," Journal of Health Economics, Elsevier, vol. 19(3), pages 403-420, May.
    48. Heinz Welsch, 2011. "The magic triangle of macroeconomics: how do European countries score?," Oxford Economic Papers, Oxford University Press, vol. 63(1), pages 71-93, January.
    49. Carsten Ochsen, 2011. "Subjective well‐being and aggregate unemployment: further evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(5), pages 634-655, November.
    50. Dean Yang, 2006. "Why Do Migrants Return to Poor Countries? Evidence From Philippine Migrants%u2019 Responses to Exchange Rate Shocks," NBER Working Papers 12396, National Bureau of Economic Research, Inc.
    51. Johannes Schwarze & Rainer Winkelmann, 2011. "Happiness and altruism within the extended family," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 1033-1051, July.
    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. Prakash, Kushneel & Kumar, Sanjesh, 2021. "“Smoking your child’s job away”: Parental smoking during one’s childhood and the probability of being employed in adulthood," Journal of Business Research, Elsevier, vol. 136(C), pages 86-98.
    2. Awaworyi Churchill, Sefa & Munyanyi, Musharavati Ephraim & Prakash, Kushneel & Smyth, Russell, 2020. "Locus of control and the gender gap in mental health," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 740-758.
    3. Bharadwaj, P. & Doiron, D. & Fiebig, D. G. & Suziedelyte, A., 2020. "Psychological Costs of Migration: Home Country Natural Disasters and Mental Health," Working Papers 20/03, Department of Economics, City University London.
    4. Nguyen, Ha Trong & Connelly, Luke & Le, Huong Thu & Mitrou, Francis & Taylor, Catherine L. & Zubrick, Stephen R., 2019. "Sources of ethnicity differences in non-cognitive development in children and adolescents," EconStor Preprints 205801, ZBW - Leibniz Information Centre for Economics.
    5. Syed Hasan & Nazmun Ratna & Shamim Shakur, 2019. "Exchange rate, remittances and expenditure of foreign-bornhouseholds: evidence from Australia," Discussion Papers 1901, School of Economics and Finance, Massey University, New Zealand.
    6. Sefa Awaworyi Churchill & Lisa Farrell & Russell Smyth, 2019. "Neighbourhood ethnic diversity and mental health in Australia," Health Economics, John Wiley & Sons, Ltd., vol. 28(9), pages 1075-1087, September.
    7. Hailemariam, Abebe & Yew, Siew Ling & Appau, Samuelson, 2021. "Gender health gaps: The role of risky addictive behaviors," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 639-660.
    8. Hasan, Syed & Shakur, Shamim & Breunig, Robert, 2021. "Exchange rates and expenditure of households with foreign-born members: Evidence from Australia," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 977-997.
    9. Awaworyi Churchill, Sefa & Smyth, Russell, 2022. "Locus of control and the mental health effects of local area crime," Social Science & Medicine, Elsevier, vol. 301(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen, Ha & Duncan, Alan, 2015. "Macroeconomic fluctuations in home countries and immigrants’ well-being: New evidence from Down Under," MPRA Paper 69593, University Library of Munich, Germany, revised Feb 2016.
    2. Colombo, Emilio & Rotondi, Valentina & Stanca, Luca, 2018. "Macroeconomic conditions and health: Inspecting the transmission mechanism," Economics & Human Biology, Elsevier, vol. 28(C), pages 29-37.
    3. Martin Bassols, Nicolau & Vall Castelló, Judit, 2016. "Effects of the great recession on drugs consumption in Spain," Economics & Human Biology, Elsevier, vol. 22(C), pages 103-116.
    4. Janke, Katharina & Lee, Kevin & Propper, Carol & Shields, Kalvinder K & Shields, Michael, 2020. "Macroeconomic Conditions and Health in Britain: Aggregation, Dynamics and Local Area Heterogeneity," CEPR Discussion Papers 14507, C.E.P.R. Discussion Papers.
    5. Wang, Huixia & Wang, Chenggang & Halliday, Timothy J., 2018. "Health and health inequality during the great recession: Evidence from the PSID," Economics & Human Biology, Elsevier, vol. 29(C), pages 17-30.
    6. Erdal Tekin & Chandler McClellan & Karen Jean Minyard, 2013. "Health and Health Behaviors during the Worst of Times," NBER Working Papers 19234, National Bureau of Economic Research, Inc.
    7. Sung, Jaesang, 2017. "The Impact of Housing Prices on Health in U.S. Before, During and After the Great Recession," MPRA Paper 78831, University Library of Munich, Germany.
    8. David G. Blanchflower & David N.F. Bell & Alberto Montagnoli & Mirko Moro, 2014. "The Happiness Trade‐Off between Unemployment and Inflation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(S2), pages 117-141, October.
    9. Ruhm, Christopher J., 2015. "Recessions, healthy no more?," Journal of Health Economics, Elsevier, vol. 42(C), pages 17-28.
    10. Chad Cotti & David Simon, 2018. "The Impact Of Stock Market Fluctuations On The Mental And Physical Well‐Being Of Children," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1007-1027, April.
    11. Jaesang Sung & Qihua Qiu, 2020. "The Impact of Housing Prices on Health in the United States Before, During, and After the Great Recession," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 910-940, January.
    12. Christopher J. Ruhm, 2016. "Health Effects of Economic Crises," Health Economics, John Wiley & Sons, Ltd., vol. 25(S2), pages 6-24, November.
    13. Frijters, Paul & Johnston, David W. & Shields, Michael A. & Sinha, Kompal, 2015. "A lifecycle perspective of stock market performance and wellbeing," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 237-250.
    14. Tekin, Erdal & McClellan, Chandler & Minyard, Karen Jean, 2013. "Health and Health Behaviors during the Worst of Times: Evidence from the Great Recession," IZA Discussion Papers 7538, Institute of Labor Economics (IZA).
    15. Chenggang Wang & Huixia Wang & Timothy J. Halliday, 2017. "Health and Health Inequality during the Great Recession: Evidence from the PSID," Working Papers 201703, University of Hawaii at Manoa, Department of Economics.
    16. Cristina Bellés‐Obrero & Sergi Jiménez‐Martín & Judit Vall‐Castello, 2016. "Bad Times, Slimmer Children?," Health Economics, John Wiley & Sons, Ltd., vol. 25(S2), pages 93-112, November.
    17. Kaiser, Micha & Reutter, Mirjam & Sousa-Poza, Alfonso & Strohmaier, Kristina, 2018. "Smoking and local unemployment: Evidence from Germany," Economics & Human Biology, Elsevier, vol. 29(C), pages 138-147.
    18. Lizhong Peng & Jie Chen & Xiaohui Guo, 2022. "Macroeconomic conditions and health‐related outcomes in the United States: A metropolitan and micropolitan statistical area‐level analysis between 2004 and 2017," Health Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 3-20, January.
    19. Castellari, Elena & Tiboldo, Giulia & Moro, Daniele & Bimbo, Francesco, 2021. "La Dolce Vita in times of harshness: Prevalence of health-related behaviors during the great recession in Italy," Economics & Human Biology, Elsevier, vol. 43(C).
    20. Nguyen, Ha Trong & Duncan, Alan S, 2017. "Exchange rate fluctuations and immigrants' labour market outcomes: New evidence from Australian household panel data," Journal of International Economics, Elsevier, vol. 105(C), pages 174-186.

    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:27:y:2018:i:1:p:189-208. 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: . 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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    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.