Authors
1 Assistant Professor in Economics, Islamic Azad University
2 Economics Expert
Abstract
Labor force and its quality (human capital) have made large contribution to economic growth and development in many countries. Health is also considered as a way to improve both labor quality and productivity. Present research aims to investigate and analyze the effect of health on labor productivity for the period 1976-2004.
The ARDL econometric model used in this study incorporates variables such as life expectancy as a proxy for health, per capita physical capital, and the actual to potential output ratio as the most influential factors on labor productivity.
The results indicate that about 38.2% of labor productivity growth is contributed by an increase in health. In addition, our result show that in fourth plan (2005-2009), labor productivity growth will be about 2% less than the figure envisaged in the plan.
Keywords
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