Medical Innovation and Health Disparities

Barton H. Hamilton (), Andrés Hincapié, Emma C. Kalish and Nicholas Papageorge
Additional contact information
Barton H. Hamilton: Washington University, St. Louis
Andrés Hincapié: University of North Carolina, Chapel Hill
Emma C. Kalish: Johns Hopkins University

No 15711, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Health-maximizing and welfare-maximizing behaviors can be at odds, especially among disadvantaged groups, generating health disparities. We estimate a lifecycle model of medication and labor supply decisions using data on HIV-positive men. We evaluate an effective HIV treatment innovation that had harsh side effects: HAART. Measured in lifetime utility gains, HAART disproportionately benefitted higher-education men. Lower-education men were more likely to avoid the side effects of HAART that interfered with work. A counterfactual mandate to use HAART improves health but increases inequality because low-education individuals work less. A counterfactual non-labor income subsidy increases HAART adoption and improves health among lower-education individuals.

Keywords: health disparities; health behaviors; dynamic demand; side effects; structural models; HIV/AIDS (search for similar items in EconPapers)
JEL-codes: I12 I14 I20 J2 O31 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2022-11
New Economics Papers: this item is included in nep-hea and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Medical Innovation and Health Disparities (2021)
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