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Measuring the effect of health on cross-country income variability

Author

Listed:
  • Christiano Coelho

    (Ibmec/RJ and Uerj)

  • Pedro Gesteira

    (PPGE/UFRJ)

Abstract

We construct a human capital series adjusted for measures of health based on a new dataset from World Bank for a large sample of countries. We show that the health-adjusted series of human capital increases the explanatory power of factor inputs by seven percentage points in explaining cross-country income variability, which represents 35% of the variation generated by human capital. This result shows the importance of measures of health in human capital. It is robust to changes in the sample of countries and to how we measure the schooling component of human capital.

Suggested Citation

  • Christiano Coelho & Pedro Gesteira, 2022. "Measuring the effect of health on cross-country income variability," Economics Bulletin, AccessEcon, vol. 42(3), pages 1547-1560.
    • Handle: RePEc:ebl:ecbull:eb-22-00223
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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I3-P129.pdf
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    More about this item

    Keywords

    HUMAN CAPITAL; HEALTH; DEVELOPMENT ACCOUNTING;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I1 - Health, Education, and Welfare - - Health

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