Labor supply, schooling and the returns to healthcare in Tanzania

Arbeitspapier

We estimate the effects of higher quality healthcare usage on health, labor supply and schooling outcomes for sick individuals in Tanzania. Using exogenous variation in the cost of formal sector healthcare to predict treatment choice, we show that using better quality care improves health outcomes and changes the allocation of time amongst productive activities. In particular, sick adults who receive better quality care reallocate time from non-farm to farm labor, leaving total labor hours unchanged. Among sick children, school attendance significantly increases as a result of receiving higher quality healthcare, but labor allocations are unaffected. We interpret these results as evidence that healthcare has heterogeneous effects on marginal productivity across productive activities and household members.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Center Discussion Paper ; No. 995

Classification and Topics

• Classification: Wirtschaft ; Health: General ; Time Allocation and Labor Supply ; Agricultural Labor Markets ; Microeconomic Analyses of Economic Development
• Subject: labor supply ; health shocks ; schooling ; Tanzania

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Adhvaryu, Achyuta ; Nyshadham, Anant
• Event: Veröffentlichung
• (who): Yale University, Economic Growth Center
• (where): New Haven, CT
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/59132
• Last update: 10.03.2025, 11:41 AM CET