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Productive Benefits of Health: Evidence from Low-Income Countries

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  • T. Paul Schultz

    ()
    (Economic Growth Center, Yale University)

Abstract

Various household survey indicators of adult nutrition and health status are analyzed as determinants of individual wages. However, survey indicators of health status may be heterogeneous, or a combination of health human capital formed by investment behavior and variation due to genotype, random shocks, and measurement error, which are uncontrolled by behavior. Although there are no definitive methods for distinguishing between human capital and genetic variation in health outcomes, alternative mappings of health status, such as height, on community health services, parent socioeconomic characteristics, and ethnic categories may be suggestive. Instrumental variable estimates of health human capital and residual sources of variation in measured health status are included in wage functions to assess empirically whether the productivity of both components of health are equal. Evidence from Ghana, Cote d'Ivoire and Brazil suggests that the health human capital effect on wages is substantially larger than that associated with residual health variation.

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Bibliographic Info

Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 903.

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Length: 31 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:egc:wpaper:903

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Keywords: Health Human Capital; Wage Productivity; Brazil; Ghana; Cote D'Ivoire;

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References

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  5. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
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  7. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
  8. T. Paul Schultz, 2004. "Wage Rentals for Reproducible Human Capital: Evidence from Ghana and the Ivory Coast," Yale School of Management Working Papers ysm420, Yale School of Management.
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  14. 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.
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  20. Benefo, Kofi & Schultz, T Paul, 1996. "Fertility and Child Mortality in Cote d'Ivoire and Ghana," World Bank Economic Review, World Bank Group, vol. 10(1), pages 123-58, January.
  21. Glewwe, Paul & Jacoby, Hanan G. & King, Elizabeth M., 2001. "Early childhood nutrition and academic achievement: a longitudinal analysis," Journal of Public Economics, Elsevier, vol. 81(3), pages 345-368, September.
  22. T. Paul Schultz, 2002. "Wage Gains Associated with Height as a Form of Health Human Capital," Working Papers 841, Economic Growth Center, Yale University.
  23. Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January.
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  25. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
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Citations

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Cited by:
  1. Akram, Naeem, 2009. "Short run and long run dynamics of impact of health status on economic growth Evidence from Pakistan," MPRA Paper 15454, University Library of Munich, Germany.
  2. Akachi, Yoko & Canning, David, 2010. "Health trends in Sub-Saharan Africa: Conflicting evidence from infant mortality rates and adult heights," Economics & Human Biology, Elsevier, vol. 8(2), pages 273-288, July.
  3. Suri, Tavneet & Boozer, Michael A. & Ranis, Gustav & Stewart, Frances, 2011. "Paths to Success: The Relationship Between Human Development and Economic Growth," World Development, Elsevier, vol. 39(4), pages 506-522, April.
  4. Bhalotra, Sonia & Rawlings, Samantha B., 2011. "Intergenerational persistence in health in developing countries: The penalty of gender inequality?," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 286-299, April.
  5. Yoko Akachi & David Canning, 2007. "The Height of Women in Sub-Saharan Africa: the Role of Health, Nutrition, and Income in Childhood," PGDA Working Papers 2207, Program on the Global Demography of Aging.
  6. Morgan Kelly & Joel Mokyr & Cormac Ó Gráda, 2013. "Precocious Albion: a New Interpretation of the British Industrial Revolution," Working Papers 201311, School Of Economics, University College Dublin.
  7. Weil, David N., 2014. "Health and Economic Growth," Handbook of Economic Growth, in: Handbook of Economic Growth, edition 1, volume 2, chapter 3, pages 623-682 Elsevier.
  8. Yoko Akachi & David Canning, 2008. "The Mortality and Morbidity Transitions in Sub-Saharan Africa: Evidence from Adult Heights," PGDA Working Papers 3308, Program on the Global Demography of Aging.
  9. Cheryl Gray & Tracey Lane & Aristomene Varoudakis, 2007. "Fiscal Policy and Economic Growth : Lessons for Eastern Europe and Central Asia," World Bank Publications, The World Bank, number 6883, July.
  10. Schultz, T. Paul, 2010. "Population and Health Policies," Handbook of Development Economics, Elsevier.

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