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The Value of Pain Relief

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Author Info

  • Furnée, Carina

    ()
    (Maastricht University)

  • Kemler, Marius

    (affiliation not available)

  • Pfann, Gerard A.

    ()
    (Maastricht University)

Abstract

This paper measures the value of functional capacity improvement from electronic pain treatment among a sample of Dutch workers with peripheral nerve injuries. Randomized clinical trial data and individual medical records from injured workers are compared with administrative data of healthy workers to calibrate the treatment’s net present value of capacity improvement. The value of basic improvement averages 109,000 Dutch 1995 guilders or 25 percent of the total earnings loss without treatment. The value of advanced improvement, when on-the-job learning capacity is recovered, amounts to 150,000 Dutch guilders or 32 percent for workers with university education.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 312.

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Length: 36 pages
Date of creation: Jun 2001
Date of revision:
Publication status: published in: De Economist, 2003, 151 (2), 171-192
Handle: RePEc:iza:izadps:dp312

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Keywords: Earnings losses; injury; chronic pain; treatment.;

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  1. Werner B.F. Brouwer & Marc A. Koopmanschap & Frans F.H. Rutten, 1997. "Productivity costs in cost-effectiveness analysis: numerator or denominator: a further discussion," Health Economics, John Wiley & Sons, Ltd., vol. 6(5), pages 511-514.
  2. Parsons, Donald O, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Comment," American Economic Review, American Economic Association, American Economic Association, vol. 81(5), pages 1419-26, December.
  3. repec:fth:prinin:349 is not listed on IDEAS
  4. Bound, John & Waidmann, Timothy, 1992. "Disability Transfers, Self-Reported Health, and the Labor Force Attachment of Older Men: Evidence from the Historical Record," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(4), pages 1393-419, November.
  5. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
  6. Alan Krueger & Douglas Kruse, 1995. "Labor Market Effects of Spinal Cord Injuries in the Dawn of the Computer Age," NBER Working Papers 5302, National Bureau of Economic Research, Inc.
  7. Bound, John, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Reply," American Economic Review, American Economic Association, American Economic Association, vol. 81(5), pages 1427-34, December.
  8. Manning, Willard G., 1998. "The logged dependent variable, heteroscedasticity, and the retransformation problem," Journal of Health Economics, Elsevier, Elsevier, vol. 17(3), pages 283-295, June.
  9. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
  10. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier.
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