How does the business cycle affect eating habits?

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 US Behavioral Risk Factor Surveillance System (1990–2009) to explore the relationship between the state unemployment rate and the consumption of various healthy and unhealthy foods in the United States. Estimates, based on fixed effects methodologies, indicate that unemployment is associated with reduced consumption of fruits and vegetables and increased consumption of “unhealthy” foods such as snacks and fast food. 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 socioeconomic 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 3–6% reduction in the consumption of fruits and vegetables. The impact is somewhat higher among younger, low-educated, and married 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.

► Individual health and the business cycle are interdependent.
► Using nationally representative individual-level data, this study analyzes the effect of the business cycle on nutrition.
► Analyses generally reveal the procyclical nature of healthy food consumption.
► Accounting for confounding factors, this study finds that unemployment is associated with reduced intake of healthy food.
► Unemployment is also associated with higher consumption of snacks and fast food.