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Life expectancy and human capital: Evidence from the international epidemiological transition

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  • Hansen, Casper Worm

Abstract

Exploiting preintervention variation in mortality from various infectious diseases, together with the time variation arising from medical breakthroughs in the late 1940s and the 1950s, this study examines how a large positive shock to life expectancy influenced the formation of human capital within countries during the second half of the 20th century. The results establish that the rise in life expectancy was behind a significant part of the increase in human capital over this period. According to the baseline estimate, for one additional year of life expectancy, years of schooling increase by 0.17 year. Moreover, the evidence suggests that declines in pneumonia mortality are the underlying cause of this finding, indicating that improved childhood health increases human capital investments.

Suggested Citation

  • Hansen, Casper Worm, 2013. "Life expectancy and human capital: Evidence from the international epidemiological transition," Journal of Health Economics, Elsevier, vol. 32(6), pages 1142-1152.
  • Handle: RePEc:eee:jhecon:v:32:y:2013:i:6:p:1142-1152
    DOI: 10.1016/j.jhealeco.2013.09.011
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    2. Hansen, Casper Worm, 2014. "Cause of death and development in the US," Journal of Development Economics, Elsevier, vol. 109(C), pages 143-153.
    3. Karine Constant & Natacha Raffin, 2016. "Environnement, croissance et inégalités : le rôle particulier du canal de la santé," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 9-29.
    4. Mercedes Gumbau Albert, 2021. "The impact of health status and human capital formation on regional performance: Empirical evidence," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 123-139, February.
    5. Bayram AYDIN, 2020. "The Impact of Economic Indicators on Life Expectancy: A Panel Data Analysis," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 70(1), pages 163-181, June.
    6. Michael Kuhn & Alexia Prskawetz & Uwe Sunde, 2014. "Health, education, and retirement over the prolonged life cycle: a selective survey of recent research," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 12(1), pages 1-22.
    7. Constant, Karine, 2019. "Environmental policy and human capital inequality: A matter of life and death," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 134-157.
    8. Mohammad Mainul Hoque & Elizabeth M. King & Claudio E. Montenegro & Peter F. Orazem, 2019. "Revisiting the relationship between longevity and lifetime education: global evidence from 919 surveys," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 551-589, April.
    9. Hoque,Mohammad Mainul & King,Elizabeth M. & Montenegro,Claudio E. & Orazem,Peter F., 2017. "Longevity and lifetime education : global evidence from 919 surveys," Policy Research Working Paper Series 8175, The World Bank.
    10. Ionel Muntele & Marinela Istrate & Alexandru Bănică & Raluca-Ioana Horea-Șerban, 2020. "Trends in Life Expectancy in Romania between 1990 and 2018. A Territorial Analysis of Its Determinants," Sustainability, MDPI, vol. 12(9), pages 1-17, May.
    11. Ethem Esen & Merve Çelik Keçili, 2022. "Economic Growth and Health Expenditure Analysis for Turkey: Evidence from Time Series," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1786-1800, September.
    12. Strulik, Holger & Werner, Katharina, 2014. "Elite education, mass education, and the transition to modern growth," University of Göttingen Working Papers in Economics 205, University of Goettingen, Department of Economics.
    13. Mirela Cristea & Gratiela Georgiana Noja & Petru Stefea & Adrian Lucian Sala, 2020. "The Impact of Population Aging and Public Health Support on EU Labor Markets," IJERPH, MDPI, vol. 17(4), pages 1-27, February.
    14. Hoque, Mohammad Mainul & King, Elizabeth M. & Montenegro, Claudio E. & Orazem, Peter F., 2020. "Life Expectancy at Birth and Lifetime Education and Earnings," ISU General Staff Papers 202009010700001121, Iowa State University, Department of Economics.
    15. Veasna Kheng & Sizhong Sun & Sajid Anwar, 2017. "Foreign direct investment and human capital in developing countries: a panel data approach," Economic Change and Restructuring, Springer, vol. 50(4), pages 341-365, November.
    16. Peter Juul Egedesø & Casper Worm Hansen & Peter Sandholt Jensen, 2020. "Preventing the White Death: Tuberculosis Dispensaries," The Economic Journal, Royal Economic Society, vol. 130(629), pages 1288-1316.
    17. Casper Worm Hansen & Lars Lønstrup, 2015. "The Rise in Life Expectancy and Economic Growth in the 20th Century," Economic Journal, Royal Economic Society, vol. 0(584), pages 838-852, May.
    18. Victoria Baranov & Hans-Peter Kohler, 2018. "The Impact of AIDS Treatment on Savings and Human Capital Investment in Malawi," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 266-306, January.
    19. Mariko J. Klasing & Petros Milionis, 2020. "The international epidemiological transition and the education gender gap," Journal of Economic Growth, Springer, vol. 25(1), pages 37-86, March.
    20. Karine Constant, 2015. "Environmental Policy and Inequality: A Matter of Life and Death," Working Papers halshs-01174052, HAL.
    21. Casper Worm Hansen & Holger Strulik, 2017. "Life expectancy and education: evidence from the cardiovascular revolution," Journal of Economic Growth, Springer, vol. 22(4), pages 421-450, December.
    22. Casper Worm Hansen & Peter Sandholt Jensen & Peter Egedesø Madsen, 2016. "Information and Disease Prevention: Tuberculosis Dispensaries," Discussion Papers 16-01, University of Copenhagen. Department of Economics.
    23. Trung V. Vu, 2023. "Life expectancy and human capital: New empirical evidence," Health Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 395-412, February.
    24. Biyase, Mduduzi & Malesa, Mokgadi, 2019. "Life Expectancy and Economic Growth: Evidence from the Southern African Development Community," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 72(3), pages 351-366.
    25. Kaur, Harpaljit & Habibullah, Muzafar & Nagaratnam, Shalini, 2019. "Impact of Natural Disasters on Biodiversity: Evidence Using Quantile Regression Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 67-81.

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    More about this item

    Keywords

    Life expectancy; Health shock; Cohort schooling data; Economic development;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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