Wednesday, December 9, 2009

Economic Insecurity and Bad Habits

Since the world faced the financial meltdown and the aftermath of economic recession, a number of people have explored the relationship between vice and economic insecurity. Two interesting studies shows that prostitution increases, but that gambling declines.

But, what about smoking when people face a liquidity shortage?
Several studies show on one hand that smoking and overweight decline during temporary economic downturns will leisure time rises.

Lately, other studies with a different perspective transformed the viewpoint on this matter. They looked on effects of economic insecurity on smoking behavior on a more individual basis. The interesting idea from this viewpoint would be that economic insecurity has a statistically significant positive effect on decision-making to whether continue or resume smoking.

According to Trenton G. Smith of Washington State University, ‘a one percent increase in the probability of becoming unemployed causes an individual person to be 2.4 percent more likely to continue smoking’.
The study focused on working-age smokers and examined their behaviour.
Maybe the takeaway on this point would be that the income insecurity caused by recessions and economic meltdowns compounds existing bad habits, but also interestingly; motivates people to stay away from picking up new ones.

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