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Evaluating Willingness to Pay as a Measure of the Impact of Dyslexia in Adults

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  • Herrera-Araujo, Daniel
  • Shaywitz, Bennett A.
  • Holahan, John M.
  • Marchione, Karen E.
  • Michaels, Reissa
  • Shaywitz, Sally E.
  • Hammitt, James K.

Abstract

While much is known about dyslexia in school-age children and adolescents, less is known about its effects on quality of life in adults. Using data from the Connecticut Longitudinal Study, we provide the first estimates of the monetary value of improving reading, speaking, and cognitive skills to dyslexic and nondyslexic adults. Using a stated-preference survey, we find that dyslexic and nondyslexic individuals value improvements in their skills in reading speed, reading aloud, pronunciation, memory, and information retrieval at about the same rate. Because dyslexics have lower self-reported levels on these skills, their total willingness to pay to achieve a high level of skill is substantially greater than for nondyslexics. However, dyslexic individuals’ willingness to pay (averaging $3000 for an improvement in all skills simultaneously) is small compared with the difference in earnings between dyslexic and nondyslexic adults. We estimate that dyslexic individuals earn 15% less per year (about $8000) than nondyslexic individuals. Although improvements in reading, speaking, and cognitive skills in adulthood are unlikely to eliminate the earnings difference that reflects differences in educational attainment and other factors, stated-preference estimates of the value of cognitive skills may substantially underestimate the value derived from effects on lifetime earnings and health.

Suggested Citation

  • Herrera-Araujo, Daniel & Shaywitz, Bennett A. & Holahan, John M. & Marchione, Karen E. & Michaels, Reissa & Shaywitz, Sally E. & Hammitt, James K., 2017. "Evaluating Willingness to Pay as a Measure of the Impact of Dyslexia in Adults," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 8(1), pages 24-48, April.
    • Handle: RePEc:cup:jbcoan:v:8:y:2017:i:01:p:24-48_00
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    References listed on IDEAS

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    1. Sloan, Frank A. & Kip Viscusi, W. & Chesson, Harrell W. & Conover, Christopher J. & Whetten-Goldstein, Kathryn, 1998. "Alternative approaches to valuing intangible health losses: the evidence for multiple sclerosis1," Journal of Health Economics, Elsevier, vol. 17(4), pages 475-497, August.
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    4. Katherine Stackelberg & James Hammitt, 2009. "Use of Contingent Valuation to Elicit Willingness-to-Pay for the Benefits of Developmental Health Risk Reductions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(1), pages 45-61, May.
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    Cited by:

    1. Wei Li & Nianbo Dong & Rebecca A. Maynard, 2020. "Power Analysis for Two-Level Multisite Randomized Cost-Effectiveness Trials," Journal of Educational and Behavioral Statistics, , vol. 45(6), pages 690-718, December.
    2. Herrera-Araujo, Daniel & Rheinberger, Christoph M. & Hammitt, James K., 2022. "Valuing non-marginal changes in mortality and morbidity risk," Journal of Health Economics, Elsevier, vol. 84(C).

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    More about this item

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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