Health care in Jamaica: quality, outcomes, and labor supply

V. Lavy, M. Palumbo, S. N. Stern

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2 Scopus citations

Abstract

This paper investigates the relationships among labor force participation, health outcomes, and the availability and quality of health care in a developing country. The authors develop an econometric model that addresses the demand for health care in a choice model and then link it to health status outcomes and labor force participation decisions. The econometric model has two parts. The authors estimate a discrete choice model to determine how people choose among the various providers of health care. Using the parameter estimates from this model, the expected value of the best available medical facility is calculated which is then used as a measure of the quality of health care available to each individual. In the second stage, health is allowed to affect labor force participation in a simultaneous equations probit model where the potential endogeneity of reported health is controlled for with a set of instruments that includes the constructed health care quality measure. The simulated impact on health outcomes and labor force participation of policy changes such as improving access to and quality of health care as well as reducing the price of health services is reported. Data from the 1989 Jamaican Survey of Living conditions, the 1989 Jamaican Labour Force Survey, and a sample (also from 1989) of Jamaican health care facilities is used. The quality of health facilities has a small improving effect on health but no significant effect on labor force participation. -from Authors

Original languageEnglish
JournalWorld Bank Living Standards Measurement Study Working Paper
Volume116
StatePublished - 1995

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