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Productive Benefits of Health: Evidence from Low-Income Countries

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Author Info
Schultz, T. Paul () (Yale University and IZA Bonn)

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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 suggest that the health human capital effect on wages is substantially larger than that associated with residual health variation.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1482.

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Length: 32 pages
Date of creation: Jan 2005
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Handle: RePEc:iza:izadps:dp1482

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Related research
Keywords: health human capital wage productivity Brazil-Ghana-Cote D’Ivoire

Other versions of this item:

Find related papers by JEL classification:
I12 - Health, Education, and Welfare - - Health - - - Health Production
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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References listed on IDEAS
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.:
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    Other versions:
  2. Haddad, Lawrence J & Bouis, Howarth E, 1991. "The Impact of Nutritional Status on Agricultural Productivity: Wage Evidence from the Philippines," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(1), pages 45-68, February.
    Other versions:
  3. Thomas, D. & Strauss, J., 1995. "Health, Wealth and Wages of Men and Women in Urban Brazil," Papers 95-11, RAND - Labor and Population Program.
  4. Foster, Andrew D, 1994. "Poverty and Illness in Low-Income Rural Areas," American Economic Review, American Economic Association, vol. 84(2), pages 216-20, May. [Downloadable!] (restricted)
  5. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier. [Downloadable!] (restricted)
  6. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June. [Downloadable!] (restricted)
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  7. Schultz, T.P., 1993. "Investments in the Schooling and Health of Women and Men: Quantities and Returns," Papers 702, Yale - Economic Growth Center.
  8. 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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  9. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
  10. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April. [Downloadable!] (restricted)
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  13. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
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  15. 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. [Downloadable!] (restricted)
  16. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Blackwell Publishing, vol. 64(3), pages 311-35, July. [Downloadable!] (restricted)
  17. Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January. [Downloadable!] (restricted)
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Cited by:
(explanations, 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. Garima Malik, 2006. "An Examination of the relationship between Health and Economic Growth," Indian Council for Research on International Economic Relations, New Delhi Working Papers 185, Indian Council for Research on International Economic Relations, New Delhi, India. [Downloadable!]
  2. 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. [Downloadable!]
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