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Efficiency of health investment: education or intelligence?

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  • Bijwaard, G.
  • van Kippersluis, H.

Abstract

In this paper we hypothesize that education is associated with a higher efficiency of health investment, yet that this efficiency advantage is solely driven by intelligence. We operationalize efficiency of health investment as the probability of dying conditional on a certain hospital diagnosis, and estimate a multistate structural equation model with three states: (i) healthy, (ii) hospitalized, and (iii) death. We use data from a Dutch cohort born around 1940 that links intelligence tests at age 12 to later-life hospitalization and mortality records. The results suggest that higher intelligence induces the higher educated to be more efficient users of health investment - intelligent individuals have a clear survival advantage for most hospital diagnoses - yet for unanticipated health shocks and diseases that require complex treatments such as COPD, education still plays a role.

Suggested Citation

  • Bijwaard, G. & van Kippersluis, H., 2015. "Efficiency of health investment: education or intelligence?," Health, Econometrics and Data Group (HEDG) Working Papers 15/12, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:15/12
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    Cited by:

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    2. Bijwaard, Govert, 2021. "Educational Differences in Mortality and Hospitalisation for Cardiovascular Diseases for Males," IZA Discussion Papers 14507, Institute of Labor Economics (IZA).
    3. Roman Hoffmann & Sebastian Uljas Lutz, 2019. "The health knowledge mechanism: evidence on the link between education and health lifestyle in the Philippines," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(1), pages 27-43, February.
    4. Hendrik Jürges & Sophie-Charlotte Meyer, 2020. "Cognitive ability and teen smoking," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(2), pages 287-296, March.
    5. Nikolov, Plamen & Pape, Andreas & Tonguc, Ozlem & Williams, Charlotte, 2020. "Predictors of Social Distancing and Mask-Wearing Behavior: Panel Survey in Seven U.S. States," IZA Discussion Papers 13745, Institute of Labor Economics (IZA).
    6. Ahsan, Md Nazmul & Maharaj, Riddhi, 2018. "Parental human capital and child health at birth in India," Economics & Human Biology, Elsevier, vol. 30(C), pages 130-149.
    7. Oikawa, M., 2020. "The effect of education on health policy reform: Evidence from Japan," Health, Econometrics and Data Group (HEDG) Working Papers 20/08, HEDG, c/o Department of Economics, University of York.

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    More about this item

    Keywords

    education; intelligence; health; multistate duration model;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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