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Medical Innovation and Health Disparities

Author

Listed:
  • Hamilton, Barton H.

    (Washington University, St. Louis)

  • Hincapié, Andrés

    (University of North Carolina, Chapel Hill)

  • Kalish, Emma C.

    (Johns Hopkins University)

  • Papageorge, Nicholas W.

    (Johns Hopkins University)

Abstract

Health-maximizing and welfare-maximizing behaviors can be at odds, especially among disadvantaged groups, generating health disparities. We estimate a lifecycle model of medication and labor supply decisions using data on HIV-positive men. We evaluate an effective HIV treatment innovation that had harsh side effects: HAART. Measured in lifetime utility gains, HAART disproportionately benefitted higher-education men. Lower-education men were more likely to avoid the side effects of HAART that interfered with work. A counterfactual mandate to use HAART improves health but increases inequality because low-education individuals work less. A counterfactual non-labor income subsidy increases HAART adoption and improves health among lower-education individuals.

Suggested Citation

  • Hamilton, Barton H. & Hincapié, Andrés & Kalish, Emma C. & Papageorge, Nicholas W., 2022. "Medical Innovation and Health Disparities," IZA Discussion Papers 15711, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15711
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    References listed on IDEAS

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    Cited by:

    1. Nicholas W. Papageorge, 2021. "Modeling Behavior during a Pandemic: Using HIV as an Historical Analogy," NBER Working Papers 28898, National Bureau of Economic Research, Inc.
    2. Mette Ejrnæs & Esteban García-Miralles & Mette Gørtz & Petter Lundborg, 2022. "When Death was Postponed: The Effect of HIV Medication on Work and Marriage," CEBI working paper series 22-08, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    3. Mette Ejrnæs & Esteban García-Miralles & Mette Gørtz & Petter Lundborg, 2023. "When death was postponed: the effect of hiv medication on work, savings and marriage," Working Papers 2317, Banco de España.

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    Keywords

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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