Analyzing Markets for Health Workers: Insights from Labor and Health Economics

Abstract

The aim of this publication is to examine how labor and health economics can be used to analyze and better understand the role and functions of health worker labor markets. Health workforce shortages stem not only from inadequate overall supply, but also from suboptimal allocation of health human resources by location and role. Low performance and productivity are also issues. These three problems are often compounded by a resource problem - the gap between the finances required for an adequate workforce and those likely available. The application of labor economics to health care labor markets needs to account for the specific institutional features and market failures in health care. The document is organized as follows: first section gives introduction, the second section sets out a broad framework that needs to be used when examining health care labor markets. The third section summarizes the key issues surrounding the demand and supply of health workers and how these interact in the health worker labor market. The fourth section summarizes the broad analytical approaches used in economics, focusing on issues of causality and labor market dynamics. The final section suggests some gaps in research and analysis for health worker labor markets in low- and middle-income countries (LMICs).