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The missing technology

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  • Bianca Frogner

Abstract

This article explores human capital investment to understand cross-sectional variation and differences in growth of health spending among the US, Australia and Canada. Using a human capital model developed by Mincer, the article examines how rate of return to schooling and years of schooling impact wage rate levels in healthcare. The model is extended to approximate the probable trajectory of healthcare wage rate growth and thus the impact on health spending. The results suggest that a higher rate of return to schooling and a more educated healthcare workforce in the US may contribute to higher healthcare wage rates and thus contribute to higher health spending levels than in Canada and Australia. The results also suggest that average healthcare wage rates are growing at the rate of potential GDP; healthcare wage rates are not driving the growth of health spending. Copyright Adis Data Information BV 2010

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  • Bianca Frogner, 2010. "The missing technology," Applied Health Economics and Health Policy, Springer, vol. 8(6), pages 361-371, November.
    • Handle: RePEc:spr:aphecp:v:8:y:2010:i:6:p:361-371
    DOI: 10.2165/11531430-000000000-00000
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    References listed on IDEAS

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    Cited by:

    1. Nor Aziah Abd Kadir & Nur Fakhzan Marwan & Adibah Hussin & Rosmah Nizam & Fazreena Mansor, 2022. "Long Run Analysis between Climate Change, Socio-Economic Factors and Technology on Health Expenditure in Malaysia," International Journal of Human Resource Studies, Macrothink Institute, vol. 12(2), pages 6589-6589, December.
    2. Bianca Frogner & Joanne Spetz & Stephen Parente & Shelley Oberlin, 2015. "The demand for health care workers post-ACA," International Journal of Health Economics and Management, Springer, vol. 15(1), pages 139-151, March.

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