IDEAS home Printed from https://ideas.repec.org/a/eee/jhecon/v68y2019ics0167629619302516.html
   My bibliography  Save this article

Medical innovation, education, and labor market outcomes of cancer patients

Author

Listed:
  • Jeon, Sung-Hee
  • Pohl, R. Vincent

Abstract

Innovations in cancer treatment have lowered mortality, but little is known about their economic benefits. We assess the effect of two decades of improvement in cancer treatment options on the labor market outcomes of breast and prostate cancer patients. In addition, we compare this effect across cancer patients with different levels of educational attainment. We estimate the effect of medical innovation on cancer patients’ labor market outcomes employing tax return and cancer registry data from Canada and measuring medical innovation by using the number of approved drugs and a quality-adjusted patent index. We find that innovations in cancer treatment during the 1990s and 2000s reduced the negative employment effects of cancer by 63% to 70%, corresponding to a reduction in the economic costs of prostate and breast cancer diagnoses by 13,500 and 5800 dollars per year, respectively. The benefits of medical innovation are limited to cancer patients with postsecondary education.

Suggested Citation

  • Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:jhecon:v:68:y:2019:i:c:s0167629619302516
    DOI: 10.1016/j.jhealeco.2019.102228
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167629619302516
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhealeco.2019.102228?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Frank R. Lichtenberg, 2014. "Has Medical Innovation Reduced Cancer Mortality?," CESifo Economic Studies, CESifo, vol. 60(1), pages 135-177.
    2. repec:adr:anecst:y:2005:i:79-80:p:25 is not listed on IDEAS
    3. Bradley, Cathy J. & Neumark, David & Barkowski, Scott, 2013. "Does employer-provided health insurance constrain labor supply adjustments to health shocks? New evidence on women diagnosed with breast cancer," Journal of Health Economics, Elsevier, vol. 32(5), pages 833-849.
    4. Harsha Thirumurthy & Joshua Graff Zivin & Markus Goldstein, 2008. "The Economic Impact of AIDS Treatment: Labor Supply in Western Kenya," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 511-552.
    5. Frank R. Lichtenberg, 2019. "The long-run impact of new medical ideas on cancer survival and mortality," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(7), pages 722-740, October.
    6. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
    7. Claudia Goldin & Lawrence F. Katz, 2002. "The Power of the Pill: Oral Contraceptives and Women's Career and Marriage Decisions," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 730-770, August.
    8. Jeon, Sung-Hee & Pohl, R. Vincent, 2017. "Health and work in the family: Evidence from spouses’ cancer diagnoses," Journal of Health Economics, Elsevier, vol. 52(C), pages 1-18.
    9. Sherry Glied & Adriana Lleras-Muney, 2008. "Technological innovation and inequality in health," Demography, Springer;Population Association of America (PAA), vol. 45(3), pages 741-761, August.
    10. Lichtenberg, Frank R., 2018. "The Impact Of New Drug Launches On Life-Years Lost In 2015 From 19 Types Of Cancer In 36 Countries," Journal of Demographic Economics, Cambridge University Press, vol. 84(3), pages 309-354, September.
    11. Meltem Daysal, N. & Orsini, C., 2012. "The Miracle Drug : Hormone Replacement Therapy and Labor Market Behavior of Middle-Aged Women," Other publications TiSEM ce29046c-47bf-4f33-87af-3, Tilburg University, School of Economics and Management.
    12. Petter Lundborg & Martin Nilsson & Johan Vikström, 2015. "Heterogeneity in the impact of health shocks on labour outcomes: evidence from Swedish workers," Oxford Economic Papers, Oxford University Press, vol. 67(3), pages 715-739.
    13. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2011. "Multivariate Matching Methods That Are Monotonic Imbalance Bounding," Journal of the American Statistical Association, American Statistical Association, vol. 106(493), pages 345-361.
    14. Titus J Galama & Hans van Kippersluis, 2019. "A Theory of Socio-economic Disparities in Health over the Life Cycle," The Economic Journal, Royal Economic Society, vol. 129(617), pages 338-374.
    15. Bradley, Cathy J. & Neumark, David & Bednarek, Heather L. & Schenk, Maryjean, 2005. "Short-term effects of breast cancer on labor market attachment: results from a longitudinal study," Journal of Health Economics, Elsevier, vol. 24(1), pages 137-160, January.
    16. Adriana Lleras-Muney & Frank R. Lichtenberg, 2010. "Are the More Educated More Likely to Use New Drugs?," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 671-696, National Bureau of Economic Research, Inc.
    17. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    18. Carlos Dobkin & Amy Finkelstein & Raymond Kluender & Matthew J. Notowidigdo, 2018. "The Economic Consequences of Hospital Admissions," American Economic Review, American Economic Association, vol. 108(2), pages 308-352, February.
    19. Cathy J. Bradley & David Neumark & Zhehui Luo & Heather L. Bednarek, 2007. "Employment‐contingent health insurance, illness, and labor supply of women: evidence from married women with breast cancer," Health Economics, John Wiley & Sons, Ltd., vol. 16(7), pages 719-737, July.
    20. W. David Bradford & John L. Turner & Jonathan W. Williams, 2018. "Off‐Label Use of Pharmaceuticals: A Detection Controlled Estimation Approach," Journal of Industrial Economics, Wiley Blackwell, vol. 66(4), pages 866-903, December.
    21. Lange, Fabian, 2011. "The role of education in complex health decisions: Evidence from cancer screening," Journal of Health Economics, Elsevier, vol. 30(1), pages 43-54, January.
    22. Aline Bütikofer & Meghan M. Skira, 2018. "Missing Work Is a Pain: The Effect of Cox-2 Inhibitors on Sickness Absence and Disability Pension Receipt," Journal of Human Resources, University of Wisconsin Press, vol. 53(1), pages 71-122.
    23. Francisco Parro & R. Vincent Pohl, 2018. "Health Shocks, Human Capital, and Labor Market Outcomes," Upjohn Working Papers 18-290, W.E. Upjohn Institute for Employment Research.
    24. Bradley, Cathy J. & Bednarek, Heather L. & Neumark, David, 2002. "Breast cancer survival, work, and earnings," Journal of Health Economics, Elsevier, vol. 21(5), pages 757-779, September.
    25. Heinesen, Eskil & Kolodziejczyk, Christophe, 2013. "Effects of breast and colorectal cancer on labour market outcomes—Average effects and educational gradients," Journal of Health Economics, Elsevier, vol. 32(6), pages 1028-1042.
    26. Pilar García-Gómez & Hans van Kippersluis & Owen O’Donnell & Eddy van Doorslaer, 2013. "Long-Term and Spillover Effects of Health Shocks on Employment and Income," Journal of Human Resources, University of Wisconsin Press, vol. 48(4), pages 873-909.
    27. Yang Meng & Nadine Hertel & John Ellis & Edith Morais & Helen Johnson & Zoe Philips & Neil Roskell & Andrew Walker & Dawn Lee, 2018. "The cost-effectiveness of nivolumab monotherapy for the treatment of advanced melanoma patients in England," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1163-1172, November.
    28. Frank Lichtenberg, 2015. "The impact of pharmaceutical innovation on premature cancer mortality in Canada, 2000–2011," International Journal of Health Economics and Management, Springer, vol. 15(3), pages 339-359, September.
    29. Nicholas W. Papageorge, 2016. "Why medical innovation is valuable: Health, human capital, and the labor market," Quantitative Economics, Econometric Society, vol. 7(3), pages 671-725, November.
    30. Craig L. Garthwaite, 2012. "The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 116-137, July.
    31. Bütikofer, Aline & Cronin, Christopher J. & Skira, Meghan M., 2020. "Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants," Journal of Health Economics, Elsevier, vol. 73(C).
    32. Sung‐Hee Jeon, 2017. "The Long‐Term Effects of Cancer on Employment and Earnings," Health Economics, John Wiley & Sons, Ltd., vol. 26(5), pages 671-684, May.
    33. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    34. Frank R. Lichtenberg, 2017. "The Impact of Public and Private Research Support on Premature Cancer Mortality and Hospitalization in the U.S., 1999-2013," NBER Working Papers 23241, National Bureau of Economic Research, Inc.
    35. Martha J. Bailey, 2006. "More Power to the Pill: The Impact of Contraceptive Freedom on Women's Life Cycle Labor Supply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 289-320.
    36. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2012. "Causal Inference without Balance Checking: Coarsened Exact Matching," Political Analysis, Cambridge University Press, vol. 20(1), pages 1-24, January.
    37. Imbens,Guido W. & Rubin,Donald B., 2015. "Causal Inference for Statistics, Social, and Biomedical Sciences," Cambridge Books, Cambridge University Press, number 9780521885881.
    38. Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Angelini, Viola & Costa-Font, Joan, 2023. "Health and wellbeing spillovers of a partner's cancer diagnosis," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 422-437.
    2. Francisco Parro & R. Vincent Pohl, 2021. "The effect of accidents on labor market outcomes: Evidence from Chile," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1015-1032, May.
    3. Bütikofer, Aline & Cronin, Christopher J. & Skira, Meghan M., 2020. "Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants," Journal of Health Economics, Elsevier, vol. 73(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Volha Lazuka, 2022. "Household and individual economic responses to different health shocks: The role of medical innovations," Papers 2206.03306, arXiv.org, revised Nov 2022.
    2. Macchioni Giaquinto, Annarita & Jones, Andrew M. & Rice, Nigel & Zantomio, Francesca, 2021. "Labour supply and informal care responses to health shocks within couples: evidence from the UKHLS," GLO Discussion Paper Series 806, Global Labor Organization (GLO).
    3. Jeon, Sung-Hee & Pohl, R. Vincent, 2017. "Health and work in the family: Evidence from spouses’ cancer diagnoses," Journal of Health Economics, Elsevier, vol. 52(C), pages 1-18.
    4. Jones, Andrew M. & Rice, Nigel & Zantomio, Francesca, 2020. "Acute health shocks and labour market outcomes: Evidence from the post crash era," Economics & Human Biology, Elsevier, vol. 36(C).
    5. Andrew M. Jones & Nigel Rice & Francesca Zantomio, 2016. "Acute health shocks and labour market outcomes," Working Papers 2016:09, Department of Economics, University of Venice "Ca' Foscari".
    6. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche, 2019. "The Effects of Breast Cancer on Individual Labour Market Outcomes: An Evaluation from an Administrative Panel in France," Annals of Economics and Statistics, GENES, issue 136, pages 103-126.
    7. Belloni, Michele & Simonetti, Irene & Zantomio, Francesca, 2019. "Long-run effects of health shocks in a highly regulated labour market," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201922, University of Turin.
    8. Annarita Macchioni Giaquinto & Andrew M. Jones & Nigel Rice & Francesca Zantomio, 2022. "Labor supply and informal care responses to health shocks within couples: Evidence from the UK," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2700-2720, December.
    9. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    10. Bütikofer, Aline & Cronin, Christopher J. & Skira, Meghan M., 2020. "Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants," Journal of Health Economics, Elsevier, vol. 73(C).
    11. Kolodziejczyk, Christophe & Heinesen, Eskil, 2016. "Labour market participation after breast cancer for employees from the private and public sectors: Educational and sector gradients in the effect of cancer," Economics & Human Biology, Elsevier, vol. 21(C), pages 33-55.
    12. Simonetti, Irene & Belloni, Michele & Farina, Elena & Zantomio, Francesca, 2022. "Labour market institutions and long term adjustments to health shocks: Evidence from Italian administrative records," Labour Economics, Elsevier, vol. 79(C).
    13. Heinesen, Eskil & Imai, Susumu & Maruyama, Shiko, 2018. "Employment, job skills and occupational mobility of cancer survivors," Journal of Health Economics, Elsevier, vol. 58(C), pages 151-175.
    14. Z.V. Kambourova & A.S. Kalwij, 2019. "The Effects of Nationwide Breast Cancer Screening on Survival and Employment after Being Diagnosed," Working Papers 19-09, Utrecht School of Economics.
    15. Aouad, Marion, 2021. "An Examination of the Intracorrelation of Family Health Insurance," IZA Discussion Papers 14541, Institute of Labor Economics (IZA).
    16. Thomas Barnay & Mohamed Ali Ben Halima & Emmanuel Duguet & Christine Le Clainche & Camille Regaert, 2016. "The effects of breast cancer on individual labour market outcomes: an evaluation from an administrative panel," TEPP Working Paper 2016-05, TEPP.
    17. Sung‐Hee Jeon, 2017. "The Long‐Term Effects of Cancer on Employment and Earnings," Health Economics, John Wiley & Sons, Ltd., vol. 26(5), pages 671-684, May.
    18. Govert e. Bijwaard & Hans Van Kippersluis, 2016. "Efficiency of Health Investment: Education or Intelligence?," Health Economics, John Wiley & Sons, Ltd., vol. 25(9), pages 1056-1072, September.
    19. Atsuko Tanaka, 2021. "The effects of sudden health reductions on labor market outcomes: Evidence from incidence of stroke," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1480-1497, June.
    20. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.

    More about this item

    Keywords

    Medical innovation; Breast cancer; Prostate cancer; Employment; Earnings; Returns to education;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:68:y:2019:i:c:s0167629619302516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505560 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.