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Keywords = inverted labor supply

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18 pages, 390 KiB  
Article
Household Wealth and Individuals’ Mental Health: Evidence from the 2012–2018 China Family Panel Survey
by Rui Zhang, Chenglei Zhang, Jiahui Xia, Dawei Feng and Shaoyong Wu
Int. J. Environ. Res. Public Health 2022, 19(18), 11569; https://doi.org/10.3390/ijerph191811569 - 14 Sep 2022
Cited by 8 | Viewed by 2666
Abstract
Based on the data from the 2012–2018 China Family Panel Survey, this study examines the impact of household wealth on individuals’ mental health using a two-way fixed effects model. The findings indicate that household wealth exerts a significant positive effect on individuals’ mental [...] Read more.
Based on the data from the 2012–2018 China Family Panel Survey, this study examines the impact of household wealth on individuals’ mental health using a two-way fixed effects model. The findings indicate that household wealth exerts a significant positive effect on individuals’ mental health. Furthermore, this study shows that the impact of household wealth on individuals’ mental health is nonlinear but inverted U-shaped. Considering the possible endogeneity problem, this study further examines the effect of household wealth on residents’ mental health using two-stage least squares, and the conclusions remain robust. The results of the heterogeneity analysis indicate that household wealth has a greater impact on the mental health of residents in the low-education group and western region. Furthermore, the results of the mechanisms reveal that household wealth affects mental health by influencing insurance investment and individuals’ labor supply. Moreover, this study finds that household wealth affects individuals’ mental health not only in the short term but also in the medium and long terms. This study provides policy implications for the government toward improving individuals’ mental health. Full article
(This article belongs to the Section Mental Health)
19 pages, 1962 KiB  
Article
The Double-Peaked Shape of the Laffer Curve in the Case of the Inverted S-Shaped Labor Supply Curve
by Tchai Tavor, Limor Dina Gonen and Uriel Spiegel
Mathematics 2022, 10(6), 858; https://doi.org/10.3390/math10060858 - 8 Mar 2022
Viewed by 5968
Abstract
The classical backward bending of the labor supply curve has been extended to the case of the inverted S-shaped labor supply curve during the last three decades. According to this extension, at very low net wage levels near the subsistence income level, the [...] Read more.
The classical backward bending of the labor supply curve has been extended to the case of the inverted S-shaped labor supply curve during the last three decades. According to this extension, at very low net wage levels near the subsistence income level, the positive shape of the supply curve of labor may also be curved backward and become negatively sloped. A decrease in the low wage rate requires an increase in the labor supply, to maintain a minimum income level for survival. The S-shaped curve leads to a double-peaked Laffer curve, which also includes the possibility of three tax rates, each of which enables the collection of the same tax revenue. This may occur in contrast to the traditional single-peaked Laffer curve, which has two tax rates with the same revenues. Full article
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