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The effects of chronic non-communicable diseases on labour force outcomes: Quasi experimental evidence from Sri Lanka

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  • Kumara, Ajantha Sisira
  • Samaratunge, Ramanie

Abstract

We investigate the effects of experiencing non-communicable diseases (NCDs) on labour force outcomes of working-age individuals and their households in Sri Lanka. For this, quasi-experimental evidence, including average treatment effects on those treated (ATT), are generated by using the self-reported health survey of the labour force of Sri Lanka. According to the analysis, individuals with at least one NCD account for approximately 19.15% of the working-age population. On average, employment probability, labour supply, and labour earnings of them are significantly lower than those of non-NCD individuals by 9.5% (ATT=−0.102, P < 0.001), 44.6% (ATT=−0.590, P < 0.001), and 47.9% (ATT=−0.652, P < 0.001), respectively. The negative impacts on labour force outcomes are notably larger in the cases of paralysis and mental illness. These NCDs reduce individual labour supply by more than 80% and labour earnings by more than 90%. The employment probability of individuals with paralysis and mental illnesses is also relatively lower by more than 60%. Apart from these individual-level effects, the paper provides evidence on how labour force outcomes at the household level are influenced by NCDs. Our findings demonstrate that the association between individuals’ NCD-prevalence and labour force outcomes is relatively stronger for males, informal sector employees, and elderly people. The results suggest several social inclusion policies.

Suggested Citation

  • Kumara, Ajantha Sisira & Samaratunge, Ramanie, 2018. "The effects of chronic non-communicable diseases on labour force outcomes: Quasi experimental evidence from Sri Lanka," Economics & Human Biology, Elsevier, vol. 31(C), pages 40-53.
    • Handle: RePEc:eee:ehbiol:v:31:y:2018:i:c:p:40-53
    DOI: 10.1016/j.ehb.2018.08.002
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    Cited by:

    1. Samaratunge, Ramanie & Kumara, Ajantha Sisira & Abeysekera, Lakmal, 2020. "Breaking the Perverse Health-debt Cycle in Sri Lanka: Policy Options," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 728-745.
    2. Asankha Pallegedara & Ajantha Sisira Kumara, 2022. "Impacts of firewood burning for cooking on respiratory health and healthcare utilisation: Empirical evidence from Sri Lankan micro‐data," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(1), pages 465-485, January.

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    More about this item

    Keywords

    Labour force outcomes; Non-communicable diseases; Propensity score matching; Sri Lanka; Household surveys;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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