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Assessment of the Impact of Health Capital on Earnings and Subjective Well-Being of the Employed Population in Russia

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  • Irina I. Semenova, Alyona Yu. Tian

Abstract

Subjective well-being is an important guideline for state socio-economic policy. However, the influence of health capital and the level of satisfaction with various aspects of life on this factor has not been sufficiently studied. The study is aimed at identifying the role of health capital as a productive factor in the Russian economy and assessing its impact on the subjective well-being of the employed population in Russia. Research methods include regression analysis using Mincer-type equations. Microdata from the Rosstat Comprehensive Observation of Living Conditions of the Population are used as the empirical basis, among which indicators of subjective well-being (satisfaction with the quality of infrastructure, environment and work) and indicators of health capital (self-assessment of health, the ability to live an active life and the presence of chronic diseases) are highlighted. The results of the study showed that health capital was a productive factor for the employed population of Russia aged 25 to 60 from 2011 to 2022, cumulatively increasing earnings by more than 10%. Subjective well-being contributes to an increase in wages from 22% to 50%: satisfaction with the quality of available infrastructure increases income by 22 - 33%, and job satisfaction - by 23 - 50%. In turn, health capital also has a significant positive impact on subjective well-being – the respondents who rate their health highly rate job satisfaction and the quality of available infrastructure by 1.5–3% higher. The presence of a chronic illness, on the contrary, reduces satisfaction according to these indicators by 1.5–2%. The results of the study support the theoretical foundations of health capital, demonstrating that it is a productive factor in the Russian labor market even under the conditions of a tense geopolitical situation and sanction pressure. The results of the study can be used to assess the effectiveness of regional and corporate policies in the field of health capital management and develop strategies for achieving subjective well-being.

Suggested Citation

  • Irina I. Semenova, Alyona Yu. Tian, 2024. "Assessment of the Impact of Health Capital on Earnings and Subjective Well-Being of the Employed Population in Russia," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 23(2), pages 279-303.
    • Handle: RePEc:aiy:jnjaer:v:23:y:2024:i:2:p:279-303
    DOI: https://doi.org/10.15826/vestnik.2024.23.2.012
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    References listed on IDEAS

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    More about this item

    Keywords

    health capital; subjective well-being; human capital; wages; satisfaction.;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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