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Health status impacts on individual earnings in Brazil

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Author Info
Luiz Fernando Alves
Mônica Viegas Andrade ()
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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Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Glick, Peter & Sahn, David E, 1998. "Health and Productivity in a Heterogeneous Urban Labour Market," Applied Economics, Taylor and Francis Journals, vol. 30(2), pages 203-16, February. [Downloadable!] (restricted)
  2. Janet Currie & Brigitte C. Madrian, 1998. "Health, Health Insurance and the Labor Market," JCPR Working Papers 27, Northwestern University/University of Chicago Joint Center for Poverty Research.
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  3. 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. [Downloadable!] (restricted)
  4. Schultz, T. Paul & Tansel, Aysit, 1997. "Wage and labor supply effects of illness in Cote d'Ivoire and Ghana: instrumental variable estimates for days disabled," Journal of Development Economics, Elsevier, vol. 53(2), pages 251-286, August. [Downloadable!] (restricted)
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  5. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November. [Downloadable!] (restricted)
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