Workplace inequality is associated with status-signaling expenditure.

Regional inequality is known to magnify sensitivity to social rank. This, in turn, is shown to increase people's propensity to acquire luxury goods as a means to elevate their perceived social status. Yet existing research has focused on broad, aggregated datasets, and little is known about how individual-level measures of income interact with inequality within peer groups to affect status signaling. Using detailed financial transaction data, we construct 32,008 workplace peer groups and explore the longitudinal spending and salary data associated with 683,677 individuals. These data reveal links between people's status spending, their absolute salary, salary rank within their workplace peer group, and the inequality of their workplace salary distribution. Status-signaling luxury spending is found to be greatest among those who have higher salaries, whose workplaces exhibit higher inequality, and who occupy a lower rank position within the workplace. We propose that low-rank individuals in unequal workplaces suffer status anxiety and, if they can afford it, spend to signal higher status.

The association between gambling and financial, social and health outcomes in big financial data.

Gambling is an ordinary pastime for some people, but is associated with addiction and harmful outcomes for others. Evidence of these harms is limited to small-sample, cross-sectional self-reports, such as prevalence surveys. We examine the association between gambling as a proportion of monthly income and 31 financial, social and health outcomes using anonymous data provided by a UK retail bank, aggregated for up to 6.5 million individuals over up to 7 years. Gambling is associated with higher financial distress and lower financial inclusion and planning, and with negative lifestyle, health, well-being and leisure outcomes. Gambling is associated with higher rates of future unemployment and physical disability and, at the highest levels, with substantially increased mortality. Gambling is persistent over time, growing over the sample period, and has higher negative associations among the heaviest gamblers. Our findings inform the debate over the relationship between gambling and life experiences across the population.

Do Wealth Shocks Affect Health? New Evidence from the Housing Boom.

We exploit large exogenous changes in housing wealth to examine the impact of wealth gains and losses on individual health. In UK household, panel data house price increases, which endow owners with greater wealth, lower the likelihood of home owners exhibiting a range of non-chronic health conditions and improve their self-assessed health with no effect on their psychological health. These effects are not transitory and persist over a 10-year period. Using a range of fixed effects models, we provide robust evidence that these results are not biased by reverse causality or omitted factors. For owners' wealth gains affect labour supply and leisure choices indicating that house price increases allow individuals to reduce intensity of work with commensurate health benefits. © 2016 The Authors. Health Economics Published by John Wiley & Sons, Ltd.

An instrumental variable approach to unemployment, psychological health and social norm effects.

This empirical study presents estimates of the impact of unemployment on psychological health using U.K. household panel data. The causal impact of unemployment is established using instrumental variable methods. Psychological health is measured using both the General Household Questionnaire measure and also self-reported data on individual occurrences of anxiety-related conditions. We find evidence for positive selection into unemployment on the basis of poor psychological health. Nevertheless, panel instrumental variable estimates suggest a sizeable causal worsening of psychological health arising from unemployment. We also find evidence that the negative impact of unemployment can be largely mitigated by local labour market conditions: those entering unemployment in localities with higher unemployment rates suffer less deterioration in their psychological health.