Health inequality and the uses of time for workers in Europe: policy implications

J Ignacio Gimenez-Nadal,Jose Alberto Molina

doi:10.1186/s40174-016-0055-4

Abstract

This paper analyses the relationship between health inequality and the time allocation decisions of workers in six European countries, deriving some important policy implications in the context of income tax systems, regulation of working conditions, and taxes on leisure activities. Using the Multinational Time Use Study, we find that a better perception of own health is associated with more time devoted to market work activities in all six countries and with less time devoted to housework activities for both men and women. However, the evidence for the associations between health and leisure is mixed. This study represents a first step in understanding cross-country differences in the relationship between health status and time devoted to a range of activities for workers, in contrast with other analyses that have mainly focused only on market work. A better understanding of these cross-country differences may help to identify the effects of public policy on inequalities in the uses of time. JEL codes: D13, J16, J22

Highlights

In this paper, we analyse the important relationship between health inequality and the time devoted to different activities by workers in six European countries
Regarding results for men, we observe that in all countries, both the Self-Assessed Health Status’ (SAHS) and the good health variables are associated with increases in the time devoted to market work and in most countries are negatively
Focusing on the SAHS variable, an increase of one category in the health status of men is associated with decreases in the time devoted to sleep of 1.7, 1.2, 0.6, 1.6, and 1.3 % in France, Germany, Italy, the Netherlands, and Spain, respectively, increases in the time devoted to market work of 6.3, 3.7, 11.4, 7.6, and 6.1 % in France, Germany, the Netherlands, Spain and the UK, and decreases in the time devoted to non-market work of 2.1, 2.0, 7.1, and 2.5 in Germany, Italy, the Netherlands, and Spain

Summary

Introduction

We analyse the important relationship between health inequality and the time devoted to different activities by workers in six European countries. Considering Grossman’s seminal work on the concept of health capital and the demand for health (Grossman, 1972a, 1972b), health can be considered a component of the stock of individual human capital that enters as durable stock capital. Under this framework, investments in health increase the amount of time available to produce money earnings in the future.

Results

Discussion

Conclusion