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Labour market, obesity and public policy considerations

Konstantinos Eleftheriou, George Athanasiou () and Periklis Kougoulis

Economics Bulletin, 2013, vol. 33, issue 1, 783-793

Abstract: This paper attempts to investigate the relation among wages, unemployment, obesity and to identify public policies to address the problem of over-weightness. To this purpose, a simple search and matching model of labour market is developed. Our framework tries to capture the relationship between obesity and employment/unemployment by assuming that the fraction of obese workers is a function of the ratio of vacant jobs to unemployment (labour market tightness). We argue that if obesity is positively related with employment, then socially optimality dictates the imposition of a lump-sum tax on all individuals. In the opposite case a subsidy should be given.

Keywords: Obesity; Taxation; Unemployment; Wages (search for similar items in EconPapers)
JEL-codes: I1 J6 (search for similar items in EconPapers)
Date: 2013-03-18
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Working Paper: Labour Market, Obesity and Public Policy Considerations (2010) Downloads
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