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Productivity cost calculations in health economic evaluations: Correcting for compensation mechanisms and multiplier effects

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  • Krol, Marieke
  • Brouwer, Werner B.F.
  • Severens, Johan L.
  • Kaper, Janneke
  • Evers, Silvia M.A.A.

Abstract

Productivity costs related to paid work are commonly calculated in economic evaluations of health technologies by multiplying the relevant number of work days lost with a wage rate estimate. It has been argued that actual productivity costs may either be lower or higher than current estimates due to compensation mechanisms and/or multiplier effects (related to team dependency and problems with finding good substitutes in cases of absenteeism). Empirical evidence on such mechanisms and their impact on productivity costs is scarce, however.

Suggested Citation

  • Krol, Marieke & Brouwer, Werner B.F. & Severens, Johan L. & Kaper, Janneke & Evers, Silvia M.A.A., 2012. "Productivity cost calculations in health economic evaluations: Correcting for compensation mechanisms and multiplier effects," Social Science & Medicine, Elsevier, vol. 75(11), pages 1981-1988.
    • Handle: RePEc:eee:socmed:v:75:y:2012:i:11:p:1981-1988
    DOI: 10.1016/j.socscimed.2012.07.012
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    References listed on IDEAS

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    2. Michal Jakubczyk & Beata Kon, 2016. "The impact of firms' expectations & adjustments on the productivity cost of illness," KAE Working Papers 2016-008, Warsaw School of Economics, Collegium of Economic Analysis.
    3. Johan A. Liseth Hansen & Thomas Fast & Knut Reidar Wangen, 2023. "Productivity Loss Across Socioeconomic Groups Among Patients With Low Back Pain or Osteoarthritis: Estimates Using the Friction-Cost Approach in Norway," PharmacoEconomics, Springer, vol. 41(9), pages 1079-1091, September.
    4. Paul Hanly & Rebecca Maguire & Frances Drummond & Linda Sharp, 2019. "Variation in the methodological approach to productivity cost valuation: the case of prostate cancer," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(9), pages 1399-1408, December.
    5. Werner Brouwer & Kaya Verbooy & Renske Hoefman & Job Exel, 2023. "Production Losses due to Absenteeism and Presenteeism: The Influence of Compensation Mechanisms and Multiplier Effects," PharmacoEconomics, Springer, vol. 41(9), pages 1103-1115, September.
    6. Kathleen Manipis & Stephen Goodall & Paul Hanly & Rosalie Viney & Alison Pearce, 2021. "Employer survey to estimate the productivity friction period," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(2), pages 255-266, March.
    7. Jesse Kigozi & Sue Jowett & Martyn Lewis & Pelham Barton & Joanna Coast, 2016. "Estimating productivity costs using the friction cost approach in practice: a systematic review," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 31-44, January.
    8. Zhang, Wei & Sun, Huiying & Woodcock, Simon & Anis, Aslam, 2015. "Illness related wage and productivity losses: Valuing ‘presenteeism’," Social Science & Medicine, Elsevier, vol. 147(C), pages 62-71.
    9. Marieke Krol & Nikkie Hosseinnia & Werner Brouwer & Leona Hakkaart Roijen, 2023. "Multiplier Effects and Compensation Mechanisms for Inclusion in Health Economic Evaluation: A Systematic Review," PharmacoEconomics, Springer, vol. 41(9), pages 1031-1050, September.
    10. Michał Jakubczyk & Beata Koń, 2017. "The impact of firms’ adjustments on the indirect cost of illness," International Journal of Health Economics and Management, Springer, vol. 17(3), pages 377-394, September.
    11. Hanly, Paul & Ortega Ortega, Marta & Pearce, Alison & Soerjomataram, Isabelle & Sharp, Linda, 2020. "Advances in the methodological approach to friction period estimation: A European perspective," Social Science & Medicine, Elsevier, vol. 264(C).
    12. Coast, Joanna, 2018. "A history that goes hand in hand: Reflections on the development of health economics and the role played by Social Science & Medicine, 1967–2017," Social Science & Medicine, Elsevier, vol. 196(C), pages 227-232.

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