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Globalization and health worker crisis: what do wealth-effects tell us?

Author

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  • Asongu Simplice

Abstract

Purpose - – Owing to lack of relevant data on health human resource (HHR) migration, the empirical dimension of the health-worker crisis debate has remained void despite abundant theoretical literature. A health worker crisis is growing in the world. Shortages in health professionals are reaching staggering levels in many parts of the globe. The paper aims to discuss these issues. Design/methodology/approach - – A quantile regression approach is used to examine the determinants of health-worker emigration throughout the conditional distributions of health-worker emigration. This provides an investigation of the determinants when existing emigrations levels matter. The author assesses the determinants of emigration in the health sector through-out the conditional distribution of HHR emigration. Findings - – The findings have been presented in two main strands: when existing emigration levels are low and when existing emigration levels are high. In the former case (when existing emigration levels are low), wealth-effects have the following implications. First, while economic prosperity is a good tool against nurse brain drain in middle income countries (MICs), health expenditure is a good instrument against physician brain drain in low income countries (LICs). Second, whereas positive demographic change fuels the problem in LICs, it mitigates the issue in their MIC counterparts. Third, savings, government-effectiveness, foreign-aid and inflationary pressures only accentuate the problem for both income groups. Fourth, corruption-control becomes a vital tool for emigration-control in both income-brackets. Fifth, while trade openness mitigates physician emigration in LICs, financial openness has the opposite effect on nurse emigration. In the latter case (when existing immigration levels are high), the following conclusions have been drawn. First, While economic prosperity fights nurse emigration only in LICs, savings is a tool against physician emigration only in their MIC counterparts. Second, health expenditure and inflationary pressures are relevant tools in the battle against physician resource flight. Third, whereas, government effectiveness is an important policy measure for mitigating emigration in LICs, human development plays a similar role in MICs. Fourth, democracy, press-freedom, foreign-aid and financial openness fuel emigration in either income strata. Fifth, population growth and trade openness are important tools in the fight against brain-drain. Sixth, the HIV infection rate is a deterrent only to nurse emigration. Originality/value - – This paper complements existing literature by empirically investigating the World Health Organization hypothetical determinants of health-worker migration in the context of globalization when income-levels matter. In plainer terms, the work explores how the wealth of exporting countries play-out in the determinants of HHR emigration.

Suggested Citation

  • Asongu Simplice, 2014. "Globalization and health worker crisis: what do wealth-effects tell us?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(12), pages 1243-1264, November.
  • Handle: RePEc:eme:ijsepp:v:41:y:2014:i:12:p:1243-1264
    DOI: 10.1108/IJSE-12-2013-0288
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    Cited by:

    1. Ivo J. Leke & Simplice Asongu, 2016. "The Costs and Benefits of Migration into the European Union: Debunking Contemporary Myths with Facts," Working Papers of the African Governance and Development Institute. 16/053, African Governance and Development Institute..
    2. Asongu Simplice, 2015. "Determinants of health professionals’ migration in Africa: a WHO based assessment," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(7), pages 666-686, July.
    3. Ssozi, John & Amlani, Shirin, 2015. "The Effectiveness of Health Expenditure on the Proximate and Ultimate Goals of Healthcare in Sub-Saharan Africa," World Development, Elsevier, vol. 76(C), pages 165-179.
    4. Oasis Kodila-Tedika & Simplice A. Asongu, 2016. "Genetic distance and cognitive human capital: a cross-national investigation," Journal of Bioeconomics, Springer, vol. 18(1), pages 33-51, April.
    5. Kodila-Tedika, Oasis & Asongu, Simplice, 2015. "Intelligence, Human Capital and HIV/AIDS: Fresh Exploration," MPRA Paper 68320, University Library of Munich, Germany.

    More about this item

    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D60 - Microeconomics - - Welfare Economics - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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