Health demand of Grossman Model recognizes three determinant factors in estimation model such as wage, education, and age. This study intends to examine the role of wage on health demand using measurement of total sick days and that of health days as measurement for health demand applying Econometrics Model in the form of Ordinary Least Squares (OLS) Technique. It employed household data from National Social Economy Survey Panel containing reports on the two areas examined among respondents in urban area. We found that the number of respondents who were ill was 6.642 and those who were not was 9.895. We also found that increase on wage reduced sick day total among working class families but not for middle class families, and it also triggered health time for both middle-working class families. Low Elasticity Coefficient indicated inelastic health demand which needs one-fold wage increase to improve one percent of health demand. Such inelasticity in demand can increase the price of medical services in long term and is potential for health stock disparity for the people. To avoid this, health insurance is needed to cover the people in order to improve health time of the people.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.