Health Employment, Medical Spending, and Long-Term Health Reform

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Health Care Management Papers
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health care
public finance
labor markets
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Labor Economics
Other Business
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Pauly, Mark V
Saxena, Anand
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This article explores the relationships between the growth in the medical workforce in an aging society and employment in other sectors of the economy, based on data from the USA since 1985. Employment in medical services grew, but did not displace employment in other sectors uniformly. Instead, regression analysis shows that medical workforce growth produced contemporaneous reductions in relative employment in the manufacturing, construction, and information sectors, while being associated with growth in other services and public administration. Import penetration and productivity growth mattered, but much of the displacement remains even after controlling for these factors.

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2012-03-01
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CESifo Economic Studies
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