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A Theory of Education and Health

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  • Titus J. Galama

    (University of Southern California, RAND Corporation, United States)

  • Hans van Kippersluis

    (Erasmus University Rotterdam, the Netherlands)

Abstract

This paper presents a unified theory of human capital with both health capital and, what we term, skill capital endogenously determined within the model. By considering joint investment in health capital and in skill capital, the model highlights similarities and differences in these two important components of human capital. Health is distinct from skill: health is important to longevity, provides direct utility, provides time that can be devoted to work or other uses, is valued later in life, and eventually declines, no matter how much one invests in it (a dismal fact of life). Lifetime earnings are strongly multiplicative in skill and health, so that investment in skill capital raises the return to investment in health capital, and vice versa. The theory provides a conceptual framework for empirical and theoretical studies aimed at understanding the complex relati onship between education and health, and generates several new testable predictions.

Suggested Citation

  • Titus J. Galama & Hans van Kippersluis, 2015. "A Theory of Education and Health," Tinbergen Institute Discussion Papers 15-031/V, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20150031
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    3. Abrahamsen, Signe A. & Ginja, Rita & Riise, Julie, "undated". "School Health Programs: Education, Health and Welfare Dependency of Young Adults," CINCH Working Paper Series (since 2020) 74644, Duisburg-Essen University Library, DuEPublico.
    4. Yu Aoki & Lualhati Santiago, 2015. "Fertility, Health and Education of UK Immigrants: The Role of English Language Skills," CINCH Working Paper Series 1510, Universitaet Duisburg-Essen, Competent in Competition and Health, revised Aug 2015.
    5. BARONE, Adriana & NESE, Annamaria, 2017. "Investment in Education, Obesity and Health Behaviours," CELPE Discussion Papers 146, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    6. Strulik, Holger, 2018. "The return to education in terms of wealth and health," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 1-14.
    7. Andrew M. Jones & Audrey Laporte & Nigel Rice & Eugenio Zucchelli, 2019. "Dynamic panel data estimation of an integrated Grossman and Becker–Murphy model of health and addiction," Empirical Economics, Springer, vol. 56(2), pages 703-733, February.
    8. Jared C. Carbone & Snorre Kverndokk, 2017. "Individual Investments in Education and Health: Policy Responses and Interactions," Advances in Health Economics and Health Services Research, in: Kristian Bolin & Björn Lindgren & Michael Grossman & Dorte Gyrd-Hansen & Tor Iversen & Robert Kaestn (ed.), Human Capital and Health Behavior, volume 25, pages 33-83, Emerald Publishing Ltd.
    9. Kronenberg, Christoph, 2020. "New(spaper) Evidence of a Reduction in Suicide Mentions during the 19th‐century US Gold Rush," CINCH Working Paper Series (since 2020) 73382, Duisburg-Essen University Library, DuEPublico.
    10. Barili, E. & Bertoli, P. & Grembi, V. & Rattini, V., 2021. "COVID Angels Fighting Daily Demons? Mental Health of Healthcare Workers and Religion," Health, Econometrics and Data Group (HEDG) Working Papers 21/05, HEDG, c/o Department of Economics, University of York.
    11. Titus J. Galama & Adriana Lleras-Muney & Hans van Kippersluis, 2018. "The Effect of Education on Health and Mortality: A Review of Experimental and Quasi-Experimental Evidence," NBER Working Papers 24225, National Bureau of Economic Research, Inc.
    12. Carbone, Jared C. & Kverndokk, Snorre, 2014. "Individual investments in education and health," HERO Online Working Paper Series 2014:1, University of Oslo, Health Economics Research Programme.
    13. Séverine Chevalier & Isabelle Calmé & Hélène Coillot & Karine Le Rudulier & Evelyne Fouquereau, 2022. "How Can Students' Entrepreneurial Intention Be Increased? The Role of Psychological Capital, Perceived Learning From an Entrepreneurship Education Program, Emotions and Their Relationships," Post-Print hal-03633580, HAL.
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    15. Clarke, Damian & Mühlrad, Hanna, 2016. "The Impact of Abortion Legalization on Fertility and Maternal Mortality: New Evidence from Mexico," Working Papers in Economics 661, University of Gothenburg, Department of Economics.
    16. Michael Grossman, 2016. "‘A Theory of the Allocation of Time’ Turns Fifty: Its Impact on the Field of Health Economics," Health Economics, John Wiley & Sons, Ltd., vol. 25(1), pages 3-7, January.
    17. Elizabeth Lemmon, 2018. "Utilisation of personal care services in Scotland: the influence of unpaid carers," CINCH Working Paper Series 1802, Universitaet Duisburg-Essen, Competent in Competition and Health.
    18. Marcelo Justus & Elder G. Sant’Anna & Eloá S. Davanzo & Gustavo C. Moreira, 2020. "Education and smoking behavior in Brazil: decision to smoke and daily cigarette consumption intensity [Educação e comportamento tabagista no Brasil: decisão de fumar e intensidade de consumo diário de," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(2), pages 679-700, May-Augus.
    19. Fischer, Martin & Karlsson, Martin & Prodromidis, Nikolaos, 2021. "Long‐term Effects of Hospital Deliveries," CINCH Working Paper Series (since 2020) 74712, Duisburg-Essen University Library, DuEPublico.

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    More about this item

    Keywords

    health investment; lifecycle model; human capital; health capital;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J00 - Labor and Demographic Economics - - General - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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