The relationship between health and productivity: implications for health policy
- Publication Type:
- Thesis
- Issue Date:
- 2023
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Productivity loss resulting from illness affects individuals, firms and society. Foodborne illnesses (FBIs) and infectious diseases affect health and welfare, but the impacts are unclear. Better information is required to assist decision-makers in setting priorities and developing control measures.
This thesis uses two case studies of communicable disease: FBI and COVID-19, to explore trade-offs for individuals and policy-makers that affect health, welfare and productivity. Both cause acute illness with potential risk of long-term morbidity or death, and varying impacts on productivity. Preventive measures impose costs on individuals and/or firms, and these need to be considered.
The research uses three empirical methods (survey, discrete choice experiments and economic evaluation) across four case studies to investigate the estimation of lost productivity, measurement of trade-offs and assessment of competing priorities.
Study one used a DCE to estimate the willingness-to-pay (WTP) to avoid FBI. A key feature of the Australian labour market, the availability of sick leave entitlements was considered, and was found to influence the estimated WTP to avoid a range of acute and chronic FBIs.
Study two involved a survey of employers to estimate the time and costs of replacing a worker in Australia from a firm’s perspective to inform the friction cost approach (FCA) for estimating lost productivity. This was the first such study in Australia, and found that the time taken to replace a worker in Australia was consistent with international estimates.
Study three combines the outputs from the first two studies, to explore the application of results from a DCE and a friction cost survey to inform an economic evaluation. Productivity losses due to FBI were valued using three methods (human capital approach (HCA), FCA and WTP), and a combination of the FCA + WTP to adjust the perspective of the analysis. The methods led to different estimates of the burden of disease, consequently influencing allocation decisions.
In the final study, a DCE is used to assess general population preferences for COVID-19 policies. Trade-offs between the health risks (for self and for others), as well as productivity impacts were key concerns raised with the COVID-19 pandemic. The results showed an alignment between what the public is willing and was compelled to endure.
The thesis explores the potential of different economic approaches to better inform decisions about investment to improve health and support participation in productive activities.
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