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The Impact of Health on Productivity: Macro and Microeconomic Evidence and Policy Implications

In: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity

Author

Listed:
  • Emile Tompa

    (Scientist at the Institute for Work and Health)

Abstract

This chapter by Emile Tompa provides a comprehensive review of the theoretical underpinnings and empirical evidence of the health-productivity relationship with an emphasis on the public policy implications. This relationship goes well beyond the obvious effect of health on capacity to work both in terms of energy level and working time. Focusing on the Grossman model, the author describes three additional pathways through which health can affect productivity at an aggregate level. For instance, individuals with a longer life expectancy may choose to invest more in education as they receive greater returns from their investment. They may also be motivated to save more for retirement, which would lead to greater accumulation of physical capital. Finally, improvement in the survival and health of young children may provide incentives for reduced fertility and may result in increased labour-force participation.

Suggested Citation

  • Emile Tompa, 2002. "The Impact of Health on Productivity: Macro and Microeconomic Evidence and Policy Implications," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity, volume 2, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    • Handle: RePEc:sls:repsls:v:2:y:2002:et
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    File URL: http://www.csls.ca/repsp/2/emiletompa.pdf
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    Citations

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    Cited by:

    1. Benin, Samuel & Mogues, Tewodaj & Cudjoe, Godsway & Randriamamonjy, Josee, 2009. "Public expenditures and agricultural productivity growth in Ghana," 2009 Conference, August 16-22, 2009, Beijing, China 51634, International Association of Agricultural Economists.
    2. Ben Halima, Mohamed Ali & Rococo, Emeline, 2014. "Wage differences according to health status in France," Social Science & Medicine, Elsevier, vol. 120(C), pages 260-268.
    3. Kelly DeRango & Ben Amick, III & Michelle Robertson & Ted Rooney & Anne Moore & Lianna Bazzani, 2003. "The Productivity Consequences of Two Ergonomic Interventions," Upjohn Working Papers 03-95, W.E. Upjohn Institute for Employment Research.
    4. Samar Khairy Ghanem, 2018. "The relationship between population and the environment and its impact on sustainable development in Egypt using a multi-equation model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 305-342, February.
    5. Jochen Hartwig, 2008. "Has Health Capital Formation Cured 'Baumol's Disease'? - Panel Granger Causality Evidence for OECD Countries," KOF Working papers 08-206, KOF Swiss Economic Institute, ETH Zurich.
    6. Hanming Fang & Alessandro Gavazza, 2011. "Dynamic Inefficiencies in an Employment-Based Health Insurance System: Theory and Evidence," American Economic Review, American Economic Association, vol. 101(7), pages 3047-3077, December.
    7. Naoki Aizawa & Hanming Fang, 2020. "Equilibrium Labor Market Search and Health Insurance Reform," Journal of Political Economy, University of Chicago Press, vol. 128(11), pages 4258-4336.
    8. Hartwig, Jochen, 2010. "Is health capital formation good for long-term economic growth? - Panel Granger-causality evidence for OECD countries," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 314-325, March.
    9. Abdul Azeez Oluwanisola Abdul Wahab, 2017. "Modeling the Effect of Healthcare Expenditure and Education Expenditure on Labour Productivity: A Study on OIC Countries," GATR Journals jber134, Global Academy of Training and Research (GATR) Enterprise.
    10. Andrew Sharpe & Alexander Murray, 2011. "State of the Evidence on Health as a Determinant of Productivity," CSLS Research Reports 2011-04, Centre for the Study of Living Standards.
    11. Naoki Aizawa & Hanming Fang, 2015. "Equilibrium Labor Market Search and Health Insurance Reform, Second Version," PIER Working Paper Archive 15-024, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 28 Jun 2015.
    12. Avner Ben-Ner & Darla J Hamann & Gabriel Koepp & Chimnay U Manohar & James Levine, 2014. "Treadmill Workstations: The Effects of Walking while Working on Physical Activity and Work Performance," PLOS ONE, Public Library of Science, vol. 9(2), pages 1-11, February.
    13. Mette Gørtz & Elvira Andersson, 2014. "Child‐To‐Teacher Ratio And Day Care Teacher Sickness Absenteeism," Health Economics, John Wiley & Sons, Ltd., vol. 23(12), pages 1430-1442, December.
    14. Driouchi, Ahmed & Baijou, Ahmad, 2009. "Interdependencies of Health, Education & Poverty in Egypt, Morocco and Turkey Using Demographic and Health Survey," MPRA Paper 21409, University Library of Munich, Germany, revised 15 Mar 2010.

    More about this item

    Keywords

    Health; Safety; Human Capital; Nutrition; Longevity; Disability; Sickness; Productivity; Labour Productivity; Labor Productivity; Growth; Life Expectancy; Healthcare; Health Care; Health Spending; Investment; Childcare; Child Care;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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