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Education and family health care spending

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  • Alan C. Monheit
  • Irina B. Grafova

Abstract

Michael Grossman's seminal work on the demand for health extended the concept of a household production function to the commodity “good health.” In this framework, education represents an “environmental variable” that enhances the monetary returns to investments in health through the use of time and medical care in health production. Using data from the 2004 to 2012 Medical Expenditure Panel Survey (MEPS), we examine the association between parental education and family health care spending in single‐mother and two‐parent families. We estimate one‐ and two‐part expenditure models for total family health care spending, for specific components of such spending, and also examine the impact of parental education on selected measures of family health. Controlling for family income and health insurance status, we find consistent evidence that parental education beyond 12 years of schooling is associated with increases in family health care spending and with reductions in the likelihood of adverse health conditions.

Suggested Citation

  • Alan C. Monheit & Irina B. Grafova, 2018. "Education and family health care spending," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 71-92, July.
    • Handle: RePEc:wly:soecon:v:85:y:2018:i:1:p:71-92
    DOI: 10.1002/soej.12300
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    References listed on IDEAS

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    1. Loewenstein, George & Friedman, Joelle Y. & McGill, Barbara & Ahmad, Sarah & Linck, Suzanne & Sinkula, Stacey & Beshears, John & Choi, James J. & Kolstad, Jonathan & Laibson, David & Madrian, Brigitte, 2013. "Consumers’ misunderstanding of health insurance," Journal of Health Economics, Elsevier, vol. 32(5), pages 850-862.
    2. Victor R. Fuchs, 1982. "Economic Aspects of Health," NBER Books, National Bureau of Economic Research, Inc, number fuch82-1.
    3. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    4. Grossman, Michael, 2006. "Education and Nonmarket Outcomes," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 10, pages 577-633, Elsevier.
    5. Jason M. Fletcher & David E. Frisvold, 2009. "Higher Education and Health Investments: Does More Schooling Affect Preventive Health Care Use?," Journal of Human Capital, University of Chicago Press, vol. 3(2), pages 144-176.
    6. Michael Grossman, 2015. "The Relationship between Health and Schooling: What’s New?," NBER Working Papers 21609, National Bureau of Economic Research, Inc.
    7. Janet Currie, 2009. "Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 87-122, March.
    8. Loewenstein, George & Friedman, Joelle Y. & McGill, Barbara & Ahmad, Sarah & Linck, Suzanne & Sinkula, Stacey & Beshears, John Leonard & Choi, James J. & Kolstad, Jonathan & Laibson, David I. & Madria, 2013. "Consumers’ Misunderstanding of Health Insurance," Scholarly Articles 17190506, Harvard University Department of Economics.
    9. Leibowitz, Arleen A., 2004. "The demand for health and health concerns after 30 years," Journal of Health Economics, Elsevier, vol. 23(4), pages 663-671, July.
    10. repec:mpr:mprres:2864 is not listed on IDEAS
    11. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    12. Grossman, Michael, 2000. "The human capital model," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 7, pages 347-408, Elsevier.
    13. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1.
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