Summary Health, Nutrition and Economic Development

 Introduction
o Health is a form of human capital
o Less nutritious labors are costly to hire because they are relatively
unproductive than more nutritious labors.
o Employment structure in lower economies relies more heavily on strength
and endurance, and therefore good health (find data about numbers of
worker in each job category). Additionally, income generating capacity of the
poorest is influenced by health relative to other sector. Health has more
effect on poor societies who are working in strength and endurance related
job.
o Health value varies over the life-course.
 Correlation
o In Vietnam 1925-1955 (tranquil period), the shortest of the poorer Vietnam
region grew at faster rate than the shortest of the richer counterpart, around
50% faster. The highest of the poorer Vietnam also grew around 25% faster
than the highest of the richer Vietnam in the tranquil period.
o During 1956-1975 (upheaval period), the shortest of the poorer Vietnam
declined in growth, but the highest of the poorer still grew at slower rate.
Thus the shortest of the poorer was hit the hardest by the shocks of war
period.
o Poorest are typically in the worst health
o Shorter men earn less (evidence from Brazil) they are also less likely to be
working.
o Health consists of 2 aspects: inputs and outputs. Health inputs are nutrient
intakes, exercise, smoking and lifestyle; health outputs are body mass, height,
functionality(?)
 Economic Framework
o Health depends on health inputs (nutrition intake), labor supply
(wage/hours), socio-demographic characteristic, family background,
environmental factors (disease environment, public health service, etc),
inherent healtiness (generally unobservable, may be known partially from
economic data) and measurement error (something unknown to observer
and observee).
o Wages depends on health output, human capital from education, family
background, socio-demographic characteristic, local community
infrastructure, unobserved variables (for example school quality), and
random shocks on wages.
o Feedback effect of health >> better health, more productivity, more likely to
participate in labor force, more hours of work to be offered, more wages, and
 if wages or incomes are spent on health inputs, may create even better
health.

o The welfare of labor is a

function of C, L, H; S, A, B and ԑ. Where C is consumption, L is labor supply, H
is health outputs, S is schooling, B is family background, A is socio-
demographic characteristics and Epsilon is tastes. And the constraint is

o First order differential is below, where lambda is the marginal utility of

income.
o If health input raises wages through better health outcomes, the costs of
health-augmenting input will decline (relative to the income)