The Relationship between Education and Health in Australia and Canada
It is well accepted that education is positively related to health. However, there is considerably less agreement as to the explanation of this relationship. I examine the strength of the empirical relationship between education and health for Australia and Canada. I find that education is indeed related to health and to a very similar extent in both countries. I discuss three important explanations of the education and health relationship: technical efficiency, allocative efficiency and time preference explanations. Empirical analysis is presented which attempts to distinguish between the alternative explanations. I find evidence for all three explanations.
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