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Health Employment, Medical Spending, and Long Term Health Reform

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  • Mark V. Pauly
  • Anand Saxena

Abstract

This paper explores the relationships between the growth in the medical workforce in an aging society and employment in other sectors of the economy, based on data from the United States since 1985. Employment in medical services grew, but did not displace employment in other sectors uniformly. Instead, regression analysis shows that medical workforce growth produced contemporaneous reductions in relative employment in the manufacturing, construction, and information sectors, while being associated with growth in other services and public administration. Import penetration and productivity growth mattered, but much of the displacement remains even after controlling for these factors.

Suggested Citation

  • Mark V. Pauly & Anand Saxena, 2011. "Health Employment, Medical Spending, and Long Term Health Reform," CESifo Working Paper Series 3481, CESifo.
    • Handle: RePEc:ces:ceswps:_3481
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp3481_rev.pdf
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    References listed on IDEAS

    as
    1. Hartwig, Jochen, 2008. "What drives health care expenditure?--Baumol's model of 'unbalanced growth' revisited," Journal of Health Economics, Elsevier, vol. 27(3), pages 603-623, May.
    2. Robert E. Hall & Charles I. Jones, 2007. "The Value of Life and the Rise in Health Spending," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 39-72.
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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