How Does the Business Cycle Affect Eating Habits?

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 Behavioral Risk Factor Surveillance System (1990System ( -2007 to explore the relationship between the risk of unemployment and the consumption of various healthy and unhealthy foods. Estimates, based on fixed effects methodologies, indicate that a higher risk of unemployment is associated with reduced consumption of fruits and vegetables and increased consumption of "unhealthy" foods such as snacks and fast food. In addition to estimation of the average population effect, 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 socio-economic 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 2-8% reduction in the consumption of fruits and vegetables. The impact is somewhat higher among married individuals and older 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.

Economic crisis and the unemployment effect on household food expenditure: The case of Spain

“…Both the UEFE during boom times and the 'enhanced UEFE' during crisis times are consistent with quality deterioration in diet during downturns with respect to boom periods. Dave and Kelly (2012) confirmed this relationship for US adults, finding a relationship between unemployment status and reduced consumption of healthy foods like fruit and vegetables. Herzfeld et al (2014) also reported the consumption of a less diversified diet by Russian households in regions with high unemployment rates.…”

Exercise, Physical Activity, and Exertion over the Business Cycle

“…Recent evidence (Dave and Kelly 2010) suggests that individuals reduce their consumption of fruits and vegetables and substitute into relatively high-fat, high-calorie consumption during recessions.…”

The connection between working hours and body mass index in the U.S.: a time use analysis

“…Many papers examine the relationship between employment and unemployment indicators and health outcomes and behaviors (Ruhm 2000(Ruhm , 2003(Ruhm , 2005(Ruhm , 2007Bockerman et al 2007;Charles and DeCicca 2008;Arkes 2009;Dave and Kelly 2012). In addition, several papers have examined the effect of the business cycle on health-related time use channels (Burda and Hamermesh 2010; Aguiar et al 2013;Colman and Dave 2013a;Deb et al 2011).…”