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Medical Innovation, Education, and Labor Market Outcomes of Cancer Patients

Author

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  • Sung-Hee Jeon

    (Statistics Canada)

  • Vincent Pohl

    (University of Georgia)

Abstract

Innovations in cancer treatment have lowered mortality, but little is known about their economic benefits. We assess the effect of two decades of improvements in cancer treatment options on the labor market outcomes of breast and prostate cancer patients. In addition, we compare this effect across cancer patients with different levels of educational attainment. We estimate the effect of medical innovation on cancer patients’ labor market outcomes employing tax return and cancer registry data from Canada and measuring medical innovation by using the number of approved drugs and a quality-adjusted patent index. While cancer patients are less likely to work after their diagnosis, we find that the innovations in cancer treatment during the 1990s and 2000s reduced the negative employment effects of cancer by 63–70 percent. These benefits of medical innovation are limited to cancer patients with postsecondary education, raising concerns about unequal access to improved treatment options.

Suggested Citation

  • Sung-Hee Jeon & Vincent Pohl, 2019. "Medical Innovation, Education, and Labor Market Outcomes of Cancer Patients," Upjohn Working Papers 19-306, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:19-306
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    Cited by:

    1. Angelini, Viola & Costa-Font, Joan, 2023. "Health and wellbeing spillovers of a partner's cancer diagnosis," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 422-437.
    2. Francisco Parro & R. Vincent Pohl, 2021. "The effect of accidents on labor market outcomes: Evidence from Chile," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1015-1032, May.
    3. Bütikofer, Aline & Cronin, Christopher J. & Skira, Meghan M., 2020. "Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants," Journal of Health Economics, Elsevier, vol. 73(C).
    4. Petri Böckerman & Mika Kortelainen & Henri Salokangas & Maria Vaalavuo, 2025. "A family affair? Long-term economic and mental health effects of spousal cancer," Journal of Population Economics, Springer;European Society for Population Economics, vol. 38(1), pages 1-30, March.

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    More about this item

    Keywords

    medical innovation; breast cancer; prostate cancer; labor supply; employment; earnings; returns to education;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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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