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Education, Information, and Improved Health: Evidence from Breast Cancer Screening

Author Info

Listed author(s):
  • Chen, Keith

    ()

    (Yale University)

  • Lange, Fabian

    ()

    (McGill University)

Abstract

While it is well known that education strongly predicts health, less is known as to why. One reason might be that education improves health-care decision making. In this paper we attempt to disentangle improved decision making from other effects of education, and to quantify how large an impact it has on both a patient’s demand for health services, and that demand’s sensitivity to objective risk factors. We do this by estimating a simple structural model of information acquisition and health decisions for data on women’s self-reported breast-cancer risk and screening behavior. This allows us to separately identify differences in the ability to process health information and differences in overall demand for health. Our results suggest that the observed education gradient in screening stems from a higher willingness-to-pay for health among the educated, but that the main reason why the educated respond more to risk factors in their screening decision is because they are much better informed about the risk factors they face.

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File URL: http://ftp.iza.org/dp3548.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3548.

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Length: 56 pages
Date of creation: Jun 2008
Publication status: published in: Journal of Health Economics, 2011, 30 (1), 43-54
Handle: RePEc:iza:izadps:dp3548
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Keywords: health; education; allocative efficiency;

Find related papers by JEL classification:

  • I10 - Health, Education, and Welfare - - Health - - - General
  • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
  • I20 - Health, Education, and Welfare - - Education - - - General
  • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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  1. de Walque, Damien, 2004. "Education, information, and smoking decisions : evidence from smoking histories, 1940-2000," Policy Research Working Paper Series 3362, The World Bank.
  2. Viscusi, W Kip, 1993. "The Value of Risks to Life and Health," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1912-1946, December.
  3. Robert T. Michael, 1972. "The Effect of Education on Efficiency in Consumption," NBER Books, National Bureau of Economic Research, Inc, number mich72-1, June.
  4. Kenkel, Donald S, 1991. "Health Behavior, Health Knowledge, and Schooling," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 287-305, April.
  5. Kenkel, D., 1988. "The Demand For Preventive Medical Care," Papers 3-88-4, Pennsylvania State - Department of Economics.
  6. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
  7. Grossman, Michael, 2000. "The human capital model," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 7, pages 347-408 Elsevier.
  8. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc.
  9. de Walque, Damien, 2007. "How does the impact of an HIV/AIDS information campaign vary with educational attainment? Evidence from rural Uganda," Journal of Development Economics, Elsevier, vol. 84(2), pages 686-714, November.
  10. Kevin M. Murphy & Robert H. Topel, 2006. "The Value of Health and Longevity," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 871-904, October.
  11. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, June.
  12. John Mullahy, 1999. "It'll only hurt a second? Microeconomic determinants of who gets flu shots," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 9-24.
  13. Viscusi, W Kip, 1990. "Do Smokers Underestimate Risks?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1253-1269, December.
  14. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  15. Donald S. Kenkel, 1991. "What you don't know really won't hurt you," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 10(2), pages 304-309.
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Cited by:

  1. Lydia Lawless & Andreas Drichoutis & Rodolfo Nayga, 2013. "Time preferences and health behaviour: a review," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 1(1), pages 1-19, December.
  2. Philip Oreopoulos & Kjell G. Salvanes, 2011. "Priceless: The Nonpecuniary Benefits of Schooling," Journal of Economic Perspectives, American Economic Association, vol. 25(1), pages 159-184, Winter.
  3. repec:spr:agfoec:v:1:y:2013:i:1:p:1-19 is not listed on IDEAS
  4. Philip Oreopoulos & Kjell G. Salvanes, 2009. "How large are returns to schooling? Hint: Money isn't everything," NBER Working Papers 15339, National Bureau of Economic Research, Inc.

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