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Health status impacts on individual earnings in Brazil

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  • Luiz Fernando Alves
  • Mônica Viegas Andrade

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    Abstract

    The aim of this paper is to estimate the impact of health conditions on the earnings of Brazilians. We have identified three ways through which health conditions affect workers’ earnings: labor force participation, hourly wages and weekly hours worked. A measure of the welfare reduction due to poor health conditions was created by aggregating individual losses. Individuals are classified as sick or healthy according to two criteria. Firstly, the clinical criterion which is based on the presence of chronic diseases or problems with physical mobility. Secondly, the subjective criterion which is based on the health self-assessment. Each Brazilian individual loses from R$6.30 to R$16.89 per week depending on individual characteristics. In relative terms these aggregated losses represent from 1.5% to 4.7% of the Brazilian GDP. The data base used in this work were PNAD/1998 (the Brazilian national household survey). In 1998, PNAD had an additional survey about health.

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    Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td173.

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    Length: 31 pages
    Date of creation: Jun 2002
    Date of revision:
    Handle: RePEc:cdp:texdis:td173

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    1. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416 Elsevier.
    2. Peter Glick & David E. Sahn, 1998. "Health and productivity in a heterogeneous urban labour market," Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 203-216, February.
    3. Schultz, T-P, 1996. "Wage and Labor Supply effects of Illness in Cote d'Ivoire and Ghana : Instrumental Variable Estimates for Days Disabled," Papers 757, Yale - Economic Growth Center.
    4. 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 223-55, March-Apr.
    5. Michael P. Kidd & Peter J. Sloane & Ivan Ferko, 1998. "Disability and the Labour Market: an analysis of British males," Working Papers 98-10, Department of Economics, University of Aberdeen.
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