Summary Health, Nutrition And Economic Development

Summary Health, Nutrition and Economic Development

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Introduction o Health is a form of human capital o Less nutritious labors are costly to hire because they are relatively unproductive than more nutritious labors. o Employment structure in lower economies relies more heavily on strength and endurance, and therefore good health (find data about numbers of worker in each job category). Additionally, income generating capacity of the poorest is influenced by health relative to other sector. Health has more effect on poor societies who are working in strength and endurance related job. o Health value varies over the life-course. Correlation o In Vietnam 1925-1955 (tranquil period), the shortest of the poorer Vietnam region grew at faster rate than the shortest of the richer counterpart, around 50% faster. The highest of the poorer Vietnam also grew around 25% faster than the highest of the richer Vietnam in the tranquil period. o During 1956-1975 (upheaval period), the shortest of the poorer Vietnam declined in growth, but the highest of the poorer still grew at slower rate. Thus the shortest of the poorer was hit the hardest by the shocks of war period. o Poorest are typically in the worst health o Shorter men earn less (evidence from Brazil) they are also less likely to be working. o Health consists of 2 aspects: inputs and outputs. Health inputs are nutrient intakes, exercise, smoking and lifestyle; health outputs are body mass, height, functionality(?) Economic Framework o Health depends on health inputs (nutrition intake), labor supply (wage/hours), socio-demographic characteristic, family background, environmental factors (disease environment, public health service, etc), inherent healtiness (generally unobservable, may be known partially from economic data) and measurement error (something unknown to observer and observee). o Wages depends on health output, human capital from education, family background, socio-demographic characteristic, local community infrastructure, unobserved variables (for example school quality), and random shocks on wages. o Feedback effect of health >> better health, more productivity, more likely to participate in labor force, more hours of work to be offered, more wages, and

if wages or incomes are spent on health inputs, may create even better health. o

The welfare of labor is a function of C, L, H; S, A, B and ԑ. Where C is consumption, L is labor supply, H is health outputs, S is schooling, B is family background, A is sociodemographic characteristics and Epsilon is tastes. And the constraint is

o First order differential is below, where lambda is the marginal utility of income. o If health input raises wages through better health outcomes, the costs of health-augmenting input will decline (relative to the income)