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The contribution of female health to economic development

Author

Listed:
  • David E. Bloom

    (Harvard T. H. Chan School of Public Health)

  • Michael Kuhn

    (Vienna Institute of Demography)

  • Klaus Prettner

    (Institute of Statistics and Mathematical Methods in EconomicsAuthor-Email: klaus.prettner@econ.tuwien.ac.at)

Abstract

We analyze the economic consequences for less developed countries of investing in female health. In so doing we introduce a novel micro-founded dynamic general equilibrium framework in which parents trade off the number of children against investments in their education and in which we allow for health-related gender differences in productivity. We show that better female health speeds up the demographic transition and thereby the take-off toward sustained economic growth. By contrast, male health improvements delay the transition and the take-off because ceteris paribus they raise fertility. According to our results, investing in female health is therefore an important lever for development policies. However, and without having to assume anti-female bias, we also show that households prefer male health improvements over female health improvements because they imply a larger static utility gain. This highlights the existence of a dynamic trade-off between the short-run interests of households and long-run development goals. Our numerical analysis shows that even small changes in female health can have a strong impact on the transition process to a higher income level in the long run. Our results are robust with regard to a number of extensions, most notably endogenous investment in health care. JEL Codes: O11, I15, I25, J13, J16

Suggested Citation

  • David E. Bloom & Michael Kuhn & Klaus Prettner, 2016. "The contribution of female health to economic development," PGDA Working Papers 12615, Program on the Global Demography of Aging.
  • Handle: RePEc:gdm:wpaper:12615
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    More about this item

    Keywords

    economic development; educational transition; female health; fertility transition; quality-quantity trade-off;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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