nep-hea New Economics Papers
on Health Economics
Issue of 2015‒08‒19
twenty papers chosen by
Yong Yin
SUNY at Buffalo

  1. Do Peer Comparison Feedback and Financial Incentives Induce Healthy Behavior? Evidence from Dormitory Roommate Assignments By Katare, Bhagyashree; Beatty, Timothy
  2. The Effects of Two Influential Early Childhood Interventions on Health and Healthy Behaviors By Gabriella Conti; James J. Heckman; Rodrigo Pinto
  3. Pediatrician's Communication skills: essential or complimentary? Mind the gap By V. Miligkos; Kostas Nikolopoulos; M. Miligkos; Sally Sambrook
  4. The impact of primary care quality on inpatient length of stay for people with dementia: an analysis by discharge destination By Panagiotis Kasteridis; Maria Goddard; Rowena Jacobs; Rita Santos; Anne Mason
  5. Does malaria control impact education? Evidence from Roll Back Malaria in Africa By Maria Kuecken; Josselin Thuilliez; Marie-Anne Valfort
  6. Cost-effectiveness analysis of early access to medical and social care for migrants living with HIV in France By Marlène Guillon; Michel Celse; Pierre-Yves Geoffard
  7. Cause-of-Death Mortality: What Can Be Learned From Population Dynamics? By Séverine Arnold; Alexandre Boumezoued; Héloïse Labit Hardy; Nicole El Karoui
  8. Does care to dependent elderly people living at home increase their mental health? By Thomas Barnay; Sandrine Juin
  9. Incentives to patients versus incentives to health care providers: The users' perspective By Izabela Jelovac; Philippe Polomé
  10. Optimal health investment and preferences structure By T Azomahou; Bity Diene; Mbaye Diene; Luc Soete
  11. The short run elasticity of National Health Service nurses’ labour supply in Great Britain By Rowena Crawford; Richard Disney; Carl Emmerson
  12. Title: Strategic Intelligence Monitor on Personal Health Systems Phase 3 (SIMPHS 3) – SPARRA (United Kingdom) Case Study Report By Francisco Lupiañez-Villanueva; Alexandra Theben
  13. Do Hospitals Respond to Increasing Prices by Supplying Fewer Services? By Salm, Martin; Wübker, Ansgar
  14. Feeling Useless: The Effect of Unemployment on Mental Health in the Great Recession By Farré, Lídia; Fasani, Francesco; Mueller, Hannes
  15. Smoking, Drinking, Never Thinking of Tomorrow: Income and Risky Choices amongst Young Adults in the UK By Coppola, Gianluigi; O'Higgins, Niall; Pinto, Claudio
  16. Quality and Accountability in Healthcare Delivery: Audit-Study Evidence from Primary Care in India By Jishnu Das; Alaka Holla; Aakash Mohpal; Karthik Muralidharan
  17. Health Care Insurance Payment Policy when the Physician and Patient May Collude By Bardey, David; Li, Sanxi; Wu, Yaping
  18. Employment-Based Health Insurance and Aggregate Labor Supply By Zhigang Feng; Kai Zhao
  19. The impact of a wage increase on mental health: Evidence from the UK minimum wage By Kronenberg, C.;; Jacobs, R.;; Zucchelli, E.;
  20. The contribution of female health to economic development By Bloom, David E.; Kuhn, Michael; Prettner, Klaus

  1. By: Katare, Bhagyashree; Beatty, Timothy
    Abstract: I investigate the effect of social norming and financial incentives on promoting physical exercise among randomly selected freshman students. Physical exercise is measured as the number of times an individual visits the recreation center. Social norming involves providing feedback to individuals on own and peers’ physical exercise behavior. The financial incentive allows individuals to win a gift card by having their names entered into a lottery. Previous studies show that social norming and financial incentive have been successful in modifying individual behavior. However, results from my studies using these tools have shown little effect in increasing the individuals’ frequency of physical exercise. The in-effectiveness of social norming can be explained by focus theory. It implies that social norming can instigate students to reduce their positive behavior and might lead to an unintended boomerang effect.
    Keywords: Physical Exercise, Randomized Control Trail, Health Economics and Policy, Labor and Human Capital, I1, I2,
    Date: 2015
  2. By: Gabriella Conti (University College London); James J. Heckman (The University of Chicago); Rodrigo Pinto (The University of Chicago)
    Abstract: This paper examines the long-term impacts on health and healthy behaviors of two of the oldest and most widely cited U.S. early childhood interventions evaluated by the method of randomization with long-term follow-up: the Perry Preschool Project (PPP) and the Carolina Abecedarian Project (ABC). There are pronounced gender effects strongly favoring boys, although there are also effects for girls. Dynamic mediation analyses show a significant role played by improved childhood traits, above and beyond the effects of experimentally enhanced adult socioeconomic status. These results show the potential of early life interventions for promoting health.
    Keywords: Health, early childhood intervention, social experiments, randomized trial, Abecedarian Project, Perry Preschool Project
    JEL: C12 C93 I12 I13 J13 J24
    Date: 2015
  3. By: V. Miligkos (Pediatrics Clinic, Mitera S.A., Athens, Greece); Kostas Nikolopoulos (Bangor University); M. Miligkos (Sackler School of Graduate Biomedical Sciences - Tufts University, Boston, USA); Sally Sambrook (Bangor University)
    Abstract: OBJECTIVES: To provide empirical evidence and discuss the importance of Communication in everyday Pediatric practice through investigating the process by which parents select their children's pediatricians. PATIENTS AND METHODS: A close-ended questionnaire has been administered to 500 parents in a EU country with a 95% response rate due to nature of the collection process (477 completed questionnaires) as the pediatrician was involved in the collection process. RESULTS: Our empirical results demonstrate that the parentsÕ selection priorities involve primarily the pediatriciansÕ communication skills, followed by their accessibility and much less other factors such as experience. More specifically, accessibility over the phone and ability to explain the course and treatment of the illness constitute significant priorities for the parents. CONCLUSIONS: Our study offers insight in the initial steps of obtaining child health care services, a relatively unexplored area of patient decision making and highlight the importance of communication skills and accessibility. Especially the triplet Listen Explain Persuade was found to be of paramount importance. Furthermore, we offer a Human Resources perspective, through a discussion of the implications of our findings on how private childcare clinics should recruit their specialists, as well as how they should train their specialists
    Date: 2015
  4. By: Panagiotis Kasteridis (Centre for Health Economics, University of York, UK); Maria Goddard (Centre for Health Economics, University of York, UK); Rowena Jacobs (Centre for Health Economics, University of York, UK); Rita Santos (Centre for Health Economics, University of York, UK); Anne Mason (Centre for Health Economics, University of York, UK)
    Abstract: Dementia is a chronic and progressive condition, characterized by memory loss, mood swings, and difficulties in communication, mobility, reasoning and self-care. Around 800,000 individuals in the UK have dementia and the disease imposes a huge financial burden on the formal care systems, as well as having an enormous emotional impact on carers and their families. Older people with dementia currently occupy up to 25% of NHS hospital beds and stay longer than those without dementia. Hospital admission can have a significant negative impact on the person with dementia, adversely affecting their general physical health as well as their dementia symptoms. Since 2006, GPs have been paid to identify and review patients with dementia as part of the Quality and Outcomes Framework (QOF). The dementia QOF review should focus on the patient's and carer's support needs, address the patient's physical and mental health, and assess communication and coordination arrangements across care boundaries. Where appropriate, this includes ensuring that suitable discharge arrangements are in place for patients admitted to hospital, for example by linking the patient to the local community mental health team. The QOF review may help facilitate timely discharge, but this has not previously been tested.
    Date: 2015–07
  5. By: Maria Kuecken (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Josselin Thuilliez (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS); Marie-Anne Valfort (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS)
    Abstract: Relying on microeconomic data, we examine the impact of the Roll Back Malaria (RBM) control campaigns on the educational attainment of primary school children in 14 Sub-Saharan African countries. Combining a difference-in-differences approach with an IV analysis, we exploit exogenous variation in pre-campaign malaria prevalence and exogenous variation in exposure to the timing and disbursements of the RBM campaign. In all 14 countries, the RBM campaign reveals itself as a particularly cost-effective strategy to improve primary school children’s educational attainment.
    Date: 2015–01–04
  6. By: Marlène Guillon (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC)); Michel Celse (Conseil National du Sida); Pierre-Yves Geoffard (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC))
    Abstract: Background In 2011, migrants accounted for 47% of newly diagnosed cases of HIV infection in France, including 70% from Sub-Saharan Africa. These populations meet with speci_c obstacles leading to late diagnosis and access to medical and social care. Reducing these delays has a proven benefit to patients' health and contributes to a better control of the epidemic by preventing secondary infections. Methods The objective of this study is to assess the cost-effectiveness impact of an early access to care (ATC) for migrant people living with HIV (PLHIV) in France. The model compares \early" vs. \late" ATC for migrant PLHIV in France, defined by an entry into care with a CD4 cell count of 350 and 100/mm3 respectively, and integrate the positive externality of treatment on prevention. To evaluate the cost-effectiveness of \early" ATC, incidence and hidden prevalence among migrants in France were estimated. Findings Early ATC strategy proved cost-saving, or cost-effective in the worst case scenario. In the most favorable scenario, early ATC generated an average net saving of €198,000 per patient, and prevented 0.542 secondary infection. In the worst case scenario, early ATC strategy generated an average cost of €28,000, a cost-effectiveness ratio of €133,000 per averted infection and prevented 0.211 secondary infection. Interpretation In addition to individual health benefit, improving early ATC for migrant PLHIV proves an efficient strategy in terms of public health and economics. These results stress out the benefit of ensuring ATC for all individuals living with HIV in France.
    Date: 2015–02
  7. By: Séverine Arnold (Département de Sciences Actuarielles, Université de Lausanne - UNIL - Université de Lausanne - Université de Lausanne); Alexandre Boumezoued (LPMA - Laboratoire de Probabilités et Modèles Aléatoires - CNRS - UP7 - Université Paris Diderot - Paris 7 - UPMC - Université Pierre et Marie Curie - Paris 6); Héloïse Labit Hardy (Département de Sciences Actuarielles, Université de Lausanne - UNIL - Université de Lausanne - Université de Lausanne); Nicole El Karoui (LPMA - Laboratoire de Probabilités et Modèles Aléatoires - CNRS - UP7 - Université Paris Diderot - Paris 7 - UPMC - Université Pierre et Marie Curie - Paris 6)
    Abstract: This paper analyses cause-of-death mortality changes and its impacts on the whole population evolution. The study combines cause-of-death analysis and population dynamics techniques. Our aim is to measure the impact of cause-of-death reduction on the whole population age structure, and more specifically on the depdendency ratio which is a crucial quantity for pay-as-you-go pension systems. Whereas previous studies on causes of death focused on mortality indicators such as survival curves or life expectancy, our approach provides additional information by including birth patterns. As an important conclusion, our numerical results based on French data show that populations with identical life expectancies can present important differences in their age pyramid resulting from different cause-specific mortality reductions. Sensitivities to fertility level and population flows are also given.
    Date: 2015–05–28
  8. By: Thomas Barnay (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS); Sandrine Juin (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS)
    Abstract: In France, the number of dependent elderly should d ouble by 2060. It is thus important to address the well-being of this growing share of the population. This work aims at estimating the effects of informal care and formal care on the mental health of dependent elderly. Furthermore, we allow the effect of care to vary de pending on the level of dependence, the gender of the dependent elderly and the relationship between the elderly and the primary informal caregiver. Many theoretical models include a production function of health which has two inputs, formal care and informal care but t his function has not been the subject of many empirical studies. In order to estimate the health production function, we use the French Disability and Health Survey (2008). Using a sample of 4,067 dependent elderly, three equations are jointly estimated by the maximum-likelihood method: mental health, informal care and formal care. Correlated residuals partially take into account the relationship between formal and informal cares and the reverse causality of mental health on care received. We use two mental health indicators: depression and the Mental-Health Inventory (MHI-5). The results show a positive effect of informal care on mental health, for slightly dependent elderly, for individuals receiving care from friends or neighbors and for men receiving care from a daughter or from siblings. Formal care decreases the risk of depression and improves the MHI-5 of elderly dependent people, this last effect being higher for women.
    Date: 2015–01–07
  9. By: Izabela Jelovac (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon); Philippe Polomé (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon)
    Abstract: In theory, health care providers may adapt their professional behavior to the financial incentives driven by their remuneration. Our research question is whether the users of health care services anticipate such a behavior from their general practitioner (GP) and, if they do, what are the consequences of such an anticipation on their preferences regarding financial incentives. We propose a theoretical model to identify potential determinants of such preferences. We empirically test our theoretical predictions using the data from a survey that elicits individual preferences for either patients' or providers' hypothetical incentives in France. The empirical results confirm the theoretical ones by establishing that users tend to prefer to pay a copayment themselves when the amount of GPs' incentives is high, the one of the patients' copayment is low, they anticipate that their GP's medical decisions are affected by financial incentives and their wealth is high. Otherwise, they prefer their GP to face financial incentives.
    Date: 2015
  10. By: T Azomahou (United Nations University - MERIT); Bity Diene (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I); Mbaye Diene (University Cheikh-Anta-Diop and CRES - University Cheikh-Anta-Diop and CRES - University Cheikh-Anta-Diop and CRES); Luc Soete (UNU-MERIT - United Nations University - United Nations University)
    Abstract: This paper develops a general equilibrium framework to study the role of preferences structure (additive, multiplicative and convex combination of both) in connecting consumption, health investment, stock of health and capital, and their effects on the wage rate and on productivity. We show that the elasticities of health production, health investment and health cost determine jointly how health influences the wage rate. We examine the steady state and the equilibrium dynamics of the model. In the case of additive preferences, the existence of equilibrium and the stability of the dynamic system require that the ratio of the elasticities of the cost of health and health investment is greater than the elasticity of the production function of health. Health stock can have either positive or negative effects on wage rate. The reverse holds for multiplicative preferences and the effect of health stock on wage rate is always positive. L ongevity is a decreasing convex-concave function of the elasticity of inter-temporal substitution of health. We also compare the relative behavior of opportunity costs of health under preferences structure.
    Date: 2015–04–22
  11. By: Rowena Crawford (Institute for Fiscal Studies); Richard Disney (Institute for Fiscal Studies); Carl Emmerson (Institute for Fiscal Studies)
    Abstract: The paper investigates the short run responsiveness of National Health Service (NHS) nurses’ labour supply to changes in wages of NHS nurses relative to wages in outside options available to nurses, utilising the panel data aspect of the Annual Survey of Hours and Earnings. We find the short run responsiveness of NHS nurses’ labour supply to the relative wage of NHS nurses is positive and statistically significant, albeit economically small, in regions outside the London area. In contrast, in the London region, the short run elasticity is much higher. We discuss the policy implications of these findings.
    Keywords: NHS, labour supply, relative wages
    JEL: J31 J38 J45
    Date: 2015–02
  12. By: Francisco Lupiañez-Villanueva (Open Evidence); Alexandra Theben (Open Evidence)
    Abstract: SPARRA/ACP is an integrated care management approach based on two main components: the predictive model “Scottish Patient at Risk of Readmission and Admission” (SPARRA) which aims to measure the risk of hospital admission of a targeted patient and an Anticipatory Care Planning (ACP) approach which designs, implements and monitors the most suitable intervention according to the degree of hospital admission risk of the targeted patient. Together they form the SPARRA/ACP Patient-Centric Integrated Care approach that is being implemented in several communities in Scotland, promoted by the Scottish Government and NHS Scotland as part of its strategy of national health care system renewal.
    Keywords: SIMPHS, eHealth, Remote Monitoring, ageing, integrated care, independent living, case studies, facilitators, governance, impact, drivers, barriers, integration, organisation
    JEL: I11 I18 O33 O38
    Date: 2015–07
  13. By: Salm, Martin (Tilburg University); Wübker, Ansgar (RWI)
    Abstract: Medical providers often have a significant influence on treatment decisions which they can use in their own financial interest. Classical models of supplier-induced demand predict that medical providers will supply fewer services if they face increasing prices. We test this prediction based on a reform of hospital financing in Germany. Uniquely, this reform changed the overall level of reimbursement – with increasing prices for some hospitals and decreasing prices for others – without affecting the relative prices for different types of patients. Based on administrative data, we find that hospitals do indeed react to increasing prices by reducing service supply.
    Keywords: physician-induced demand, hospital care, prospective payment
    JEL: I11 L10 L21
    Date: 2015–07
  14. By: Farré, Lídia (University of Barcelona); Fasani, Francesco (Queen Mary, University of London); Mueller, Hannes (IAE Barcelona (CSIC))
    Abstract: This article documents a strong connection between unemployment and mental disorders using data from the Spanish Health Survey. We exploit the collapse of the construction sector to identify the causal effect of job loss. Our results suggest that an increase of the unemployment rate by 10 percent due to collapse of the sector raised mental disorders in the affected population by 3 percent. We argue that the large size of this effect responds to the fact that the construction sector was at the centre of the macroeconomic shock. As a result, workers exposed to the negative employment shock faced very low chances of re-entering employment. We show that this led to long unemployment spells, hopelessness and feelings of uselessness.
    Keywords: mental health, great recession, unemployment, Spain
    JEL: I10 J60 C26
    Date: 2015–07
  15. By: Coppola, Gianluigi (University of Salerno); O'Higgins, Niall (ILO International Labour Organization); Pinto, Claudio (University of Salerno)
    Abstract: In this paper we look at the relationship between health and income as mediated by “lifestyle” choices; that is, a set of behaviours which are thought to influence health and are generally considered to invoke a substantial degree of free choice. The main underlying assumption is that individuals are co-producers of their own health. We first present a theoretical model in which health affects a consumer's utility through a Health Production Function in which health is the output and consumer goods are the inputs. We then estimate an empirical model of health related choices and outcomes. We find that there are substantial differences between the permanent and transitory income determinants – also in terms of the direction of the effects. Moreover, we find that income effects often differ significantly in size and sometimes sign according to whether the income change was positive or negative. This is attributed to the dependence creating nature of the consumption goods involved (smoking cigarettes and drinking alcohol) and their role as anxiety reducing goods which suggests that the simple theoretical model outlined here – some form of which is usually employed to analyse these issues - is not fully adequate to deal with the type of lifestyle consumption goods considered here. We indicate the lines along which a model needs to be developed in order to take this more fully into account, based on the rational addiction approach originating with Becker.
    Keywords: health, lifestyle, income, young people
    JEL: D11 D12 I12 J13
    Date: 2015–08
  16. By: Jishnu Das; Alaka Holla; Aakash Mohpal; Karthik Muralidharan
    Abstract: We present the first direct evidence on the relative quality of public and private healthcare in a low-income setting, using a unique set of audit studies. We sent standardized (fake) patients to rural primary care providers in the Indian state of Madhya Pradesh, and recorded the quality of care provided and prices charged in each interaction. We report three main findings. First, most private providers lacked formal medical training, but they spent more time with patients and completed more essential checklist items than public providers, and were equally likely to provide a correct treatment. Second, we compare the performance of qualified public doctors across their public and private practices, and find that the same doctors exerted higher effort and were more likely to provide a correct treatment in their private practices. Third, in the private sector, we find that prices charged are positively correlated with provider effort and correct treatment, but also with unnecessary treatments. In the public sector, we find no correlation between provider salaries and any measure of quality. We develop a simple theoretical framework to interpret our results and show that in settings with low levels of effort in the public sector, the benefits of higher diagnostic effort in the private sector may outweigh the costs of market incentives to over treat. These differences in provider effort may partly explain the dominant market share of fee-charging private providers even in the presence of a system of free public healthcare.
    JEL: D40 H10 H42 I11 O15
    Date: 2015–07
  17. By: Bardey, David; Li, Sanxi; Wu, Yaping
    Abstract: This paper analyzes the three-party contracting problem among the payer, the patient and the physician when the patient and the physician may collude to exploit mutually beneficial opportunities. Under the hypothesis that side transfer is ruled out, we analyze the mechanism design problem when the physician and the patient submit the claim to the payer through a reporting game. To induce truth telling by the two agents, the weak collusion-proof insurance payment mechanism is such that it is sufficient that one of them tells the truth. Moreover, we identify trade-offs of a different nature faced by the payer according to whether incentives are placed on the patient or the physician. We also derive the optimal insurance scheme for the patient and the optimal payment for the physician. Moreover, we show that if the payer is able to ask the two parties to report the diagnosis sequentially, the advantage of the veto power of the second agent allows the payer to achieve the first-best outcome.
    Keywords: collusion, falsification, health care insurance, physician payment.
    JEL: D82 I18
    Date: 2015–05
  18. By: Zhigang Feng (University of Illinois at Urbana-Champaign); Kai Zhao (University of Connecticut)
    Abstract: We study the impact of the employment-based health insurance system on aggregate labor supply in a general equilibrium life cycle model with incomplete markets and idiosyncratic risks in both income and medical expenses. We find that employment-based health insurance provides Americans with an extra incentive to work and is an important reason why they work much more hours than Europeans. In contrast to Europeans, who get universal health insurance from the government, most working-age Americans get health insurance through their employers. Since medical expenses are large and volatile, and there is no good alternative available in the private market, health insurance from employers can be highly valuable to risk-averse individuals (much more than its actuarially fair cost), thus providing them with extra incentive to work. We calibrate the benchmark model to match the US system using the Medical Expenditure Panel Survey dataset. The results of our quantitative experiments suggest that different health insurance systems account for more than half of the difference in aggregate hours that Americans and Europeans work. Furthermore, our model can also match several other relevant empirical observations, that is, the different employment rates and the different shares of full-time/part-time workers in the U.S. and Europe. When our model is extended to include the different tax rates in the U.S. and Europe, a main existing explanation for the difference in aggregate labor supply, the extended model can account for a major portion of the difference in aggregate hours that Americans and Europeans work.
    Keywords: Labor Supply, Employment-Based Health Insurance, General Equilibrium
    JEL: E20 E60
    Date: 2015–08
  19. By: Kronenberg, C.;; Jacobs, R.;; Zucchelli, E.;
    Abstract: Previous studies on the relationship between income and mental health focus on lottery winners and find that positive income shocks may improve mental health. We focus on low-wage earners, who have a higher propensity of experiencing mental health problems, and exploit the policy experiment provided by the introduction of the 1999 UK minimum wage to identify the impact of a wage increase on mental health. Combining matching techniques with a series of difference-in-differences models we find that the minimum wage had only limited short-run effects on the mental health of those affected by the minimum wage. Our estimates do not appear to support earlier findings that indicate that monetary shocks improve an individual’s mental health. Several robustness checks controlling for measurement error and treatment and control group composition appear to confirm our main results. Our findings suggest that policies aimed at improving the mental health of low-wage earners should consider either the non-wage characteristics of employment or larger wage increases.
    Keywords: minimum wage; mental health; policy evaluation; BHPS;
    JEL: C21 I18 J38
    Date: 2015–08
  20. By: Bloom, David E.; Kuhn, Michael; Prettner, Klaus
    Abstract: We analyze the economic consequences for less developed countries of investing in female health. In so doing we introduce a novel micro-founded dynamic general equilibrium framework in which parents trade off the number of children against investments in their education and in which we allow for health-related gender differences in productivity. We show that better female health speeds up the demographic transition and thereby the take-off toward sustained economic growth. By contrast, male health improvements delay the transition and the take-off because ceteris paribus they raise fertility. According to our results, investing in female health is therefore an important lever for development policies. However, and without having to assume anti-female bias, we also show that households prefer male health improvements over female health improvements because they imply a larger static utility gain. This highlights the existence of a dynamic trade-off between the short-run interests of households and long-run development goals. Our numerical analysis shows that even small changes in female health can have a strong impact on the transition process to a higher income level in the long run. Our results are robust with regard to a number of extensions, most notably endogenous investment in health care.
    Keywords: economic development,educational transition,female health,fertility transition,quality-quantity trade-off
    JEL: O11 I15 I25 J13 J16
    Date: 2015

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