Hanly, Paul, Koopmanschap, Marc and Sharp, Linda (2016) Valuing productivity costs in a changing macroeconomic environment: the estimation of colorectal cancer productivity costs using the friction cost approach. The European Journal of Health Economics, 17 (5). pp. 553-561. ISSN 1618-7601Full text not available from this repository.
The friction cost approach (FCA) has been proposed as an alternative to the human capital approach for productivity cost valuation. However, FCA estimates are context dependent and influenced by extant macroeconomic conditions. We applied the FCA to estimate colorectal cancer labor productivity costs and assessed the impact of a changing macroeconomic environment on these estimates.
Data from colorectal cancer survivors (n = 159) derived from a postal survey undertaken in Ireland March 2010 to January 2011 were combined with national wage data, population-level survival data, and occupation-specific friction periods to calculate temporary and permanent disability, and premature mortality costs using the FCA. The effects of changing labor market conditions between 2006 and 2013 on the friction period were modeled in scenario analyses. Costs were valued in 2008 euros.
In the base-case, the total FCA per-person productivity cost for incident colorectal cancer patients of working age at diagnosis was €8543. In scenario 1 (a 2.2 % increase in unemployment), the fall in the friction period caused total productivity costs to decrease by up to 18 % compared to base-case estimates. In scenario 2 (a 9.2 % increase in unemployment), the largest decrease in productivity cost was up to 65 %. Adjusting for the vacancy rate reduced the effect of unemployment on the cost results.
The friction period used in calculating labor productivity costs greatly affects the derived estimates; this friction period requires reassessment following changes in labor market conditions. The influence of changes in macroeconomic conditions on FCA-derived cost estimates may be substantial.
|Subjects:||Q Science > Life sciences > Medical sciences > Pathology > Tumors > Cancer
H Social Sciences > Economics > Microeconomics > Production (Economic theory) > Industrial productivity > Labor productivity
|Divisions:||School of Business > Staff Research and Publications|
|Depositing User:||CAOIMHE NI MHAICIN|
|Date Deposited:||02 Jun 2015 11:44|
|Last Modified:||13 Dec 2016 11:38|
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