The effects of chronic non-communicable diseases on labour force outcomes: Quasi experimental evidence from Sri Lanka

Economics and Human Biology
Ajantha Sisira Kumara, Ramanie Samaratunge

Abstract

We investigate the effects of experiencing non-communicable diseases (NCDs) on labour force outcomes of working-age individuals and their households in Sri Lanka. For this, quasi-experimental evidence, including average treatment effects on those treated (ATT), are generated by using the self-reported health survey of the labour force of Sri Lanka. According to the analysis, individuals with at least one NCD account for approximately 19.15% of the working-age population. On average, employment probability, labour supply, and labour earnings of them are significantly lower than those of non-NCD individuals by 9.5% (ATT=-0.102, P < 0.001), 44.6% (ATT=-0.590, P < 0.001), and 47.9% (ATT=-0.652, P < 0.001), respectively. The negative impacts on labour force outcomes are notably larger in the cases of paralysis and mental illness. These NCDs reduce individual labour supply by more than 80% and labour earnings by more than 90%. The employment probability of individuals with paralysis and mental illnesses is also relatively lower by more than 60%. Apart from these individual-level effects, the paper provides evidence on how labour force outcomes at the household level are influenced by NCDs. Our findings demonstrate that the associatio...Continue Reading

Citations

Oct 17, 2021·The International Journal of Health Planning and Management·Asankha Pallegedara, Ajantha Sisira Kumara

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