Health as Factor of Economic Growth: the Estonian Case
AbstractThe aim of the paper is to analyze the relationship between health and economic growth in Estonia. Health determines the quality of the human capital, which modern economic theories consider the principal factor of economic growth. On the basis of survey data we estimate the effect of self-assessed health on labor supply and wages applying econometric methods. We find that poor health is significantly related to lower wages and employment probability. We also calculate average days and hours lost from work due to ill health or injury in 2001. The plausible direct loss in GDP due to health problems is about 1-2 per cent. We conclude that although health has had overall a marginal effect on economic growth during the transition period, it is still important and its impact may increase in the future, when the population’s health capital deteriorates further as a result of the population getting older and young generations having damaging health behavior.
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Bibliographic InfoPaper provided by Tallinn School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number 110.
Date of creation: 2004
Date of revision:
Publication status: Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 103-116
Note: This research was conducted with support from the Estonian Science Foundation (Research Grants 5369 and 5083).
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More information through EDIRC
health; economic growth;
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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William Davidson Institute Working Papers Series
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