Nima Mohamadnejad; Abbas Assari Arani; Gholamreza Keshavarz Haddad; Sajjad Faraji Dizaji
Abstract
Increasing income levels in recent decades have led to an increase in the health share of GDP, which in turn has led to enhanced health and reduced mortality rates. The monetary value of mortality rate reduction leads to the concept of Value of a Statistical Life that this study calculates and examines ...
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Increasing income levels in recent decades have led to an increase in the health share of GDP, which in turn has led to enhanced health and reduced mortality rates. The monetary value of mortality rate reduction leads to the concept of Value of a Statistical Life that this study calculates and examines its dynamics for 19 age cohorts after eliminating the shortcomings of the Hall and Jones (2007) model and utilizing a dynamic planning approach (in a life cycle model). After calculating the statistical value of life, Grossman's (1972) health capital is established and calculated in Hall and Jones's (2007) theoretical framework. Results show that improving the health status of 10-14 year old individuals has the highest monetary value compared to other age groups. Also, the monetary value of utility resulting from improved health declines with age, so that for over 65 years old individuals, the monetary value of improved health reaches to the level of the monetary value of utility derived from consumption. Infant health capital fluctuates between 2 and 15 million dollars throughout 1996-2015. The fluctuation of health capital and the Value of a Statistical Life depend s on the fluctuation of per capita income, which confirms the very tight relationship between income, consumption, utility, and monetary value of life.
alaeddin ezoji; Abbas Assari Arani; mohmmad reza vaeze mahdavi; GholamReza K. Haddad
Abstract
The relationship between human capital and labor productivity is always important for economists. Considering the relationship between these two will also be remarkable in microeconomic studies. Meanwhile, the impact of different dimensions of human capital on labor productivity can be a measure ...
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The relationship between human capital and labor productivity is always important for economists. Considering the relationship between these two will also be remarkable in microeconomic studies. Meanwhile, the impact of different dimensions of human capital on labor productivity can be a measure of actual effect of human capital on productivity. The aim of this paper is to examine the effects of various dimensions of human capital (education, health, and experience), on labor productivity based on individual characteristics in Iranian economy. We use micro data (Cost–Income Survey of Urban Areas - 2013) and estimation of Quantile Regression (QR) econometric technique. For this purpose, net income (wage and salary) for employment in private sector is used as proxy of labor productivity. Our results show that in different quantiles, all three dimensions of human capital have a positive and significant effect on productivity of labor force employed in Iranian private sector. Meanwhile, in different quantiles, health indicators of human capital are more volatile than other dimensions of human capital, i.e. education and experience. So, in lower quantiles (Ql), the response of labor productivity to health indicators is more than higher quantiles (Qh). Because of that, any kind of health shock may have a greater effect on labor productivity in lower-income groups. This result shows the importance of health capital in social security, insurance and health systems and reminds us to improve the productivity of working people by means of better health capital.
