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The Economic Benefits of Reducing Racial Disparities in Health: The Case of Minnesota

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Listed:
  • Marilyn S. Nanney

    (Department of Family Medicine and Community Health, University of Minnesota, Minneapolis, MN 55455, USA)

  • Samuel L. Myers

    (Humphrey School of Public Affairs, University of Minnesota, Minneapolis, MN 55455, USA)

  • Man Xu

    (Humphrey School of Public Affairs, University of Minnesota, Minneapolis, MN 55455, USA)

  • Kateryna Kent

    (Office of Public Engagement, University of Minnesota, St. Paul, MN 55108, USA)

  • Thomas Durfee

    (Department of Applied Economics, University of Minnesota, Minneapolis, MN 55455, USA)

  • Michele L. Allen

    (Department of Family Medicine and Community Health, University of Minnesota, Minneapolis, MN 55455, USA)

Abstract

This paper estimates the benefits of eliminating racial disparities in mortality rates and work weeks lost due to illness. Using data from the American Community Survey (2005–2007) and Minnesota vital statistics (2011–2015), we explore economic methodologies for estimating the costs of health disparities. The data reveal large racial disparities in both mortality and labor market non-participation arising from preventable diseases and illnesses. Estimates show that if racial disparities in preventable deaths were eliminated, the annualized number of lives saved ranges from 475 to 812, which translates into $1.2 billion to $2.9 billion per year in economic savings (in 2017 medical care inflation-adjusted dollars). After eliminating the unexplained racial disparities in labor market participation, an additional 4,217 to 9185 Minnesota residents would have worked each year, which equals $247.43 million to $538.85 million in yearly net benefits to Minnesota.

Suggested Citation

  • Marilyn S. Nanney & Samuel L. Myers & Man Xu & Kateryna Kent & Thomas Durfee & Michele L. Allen, 2019. "The Economic Benefits of Reducing Racial Disparities in Health: The Case of Minnesota," IJERPH, MDPI, vol. 16(5), pages 1-13, March.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:5:p:742-:d:210073
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    Cited by:

    1. Beata Gavurova & Viera Ivankova & Martin Rigelsky & Ladislav Suhanyi, 2020. "Impact of Gender Inequalities in the Causes of Mortality on the Competitiveness of OECD Countries," IJERPH, MDPI, vol. 17(10), pages 1-17, May.
    2. White-Means, Shelley & Gaskin, Darrell J. & Osmani, Ahmad Reshad, 2019. "Intervention and Public Policy Pathways to Achieve Health Care Equity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 16(14), pages 1-11.
    3. Robert Stefko & Beata Gavurova & Viera Ivankova & Martin Rigelsky, 2020. "Gender Inequalities in Health and Their Effect on the Economic Prosperity Represented by the GDP of Selected Developed Countries—Empirical Study," IJERPH, MDPI, vol. 17(10), pages 1-26, May.

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