Unbiased Analysis of Today's Healthcare Issues

Archive for the 'Labor Economics' Category

Do more capable workers get better working conditions?

More capable workers typically do have the best working conditions.  The theory of compensating differentials, however, says that workers should be compensated in the form of higher wages for job amenities.  So why is this the case empirically? Today, I review the Hanbook of Labor Economics chapter by Sherwin Rosen titled “The Theory of Equalizing […]

Read the rest of this entry »

Red de Protección Social: CCTs in Nicaragua

Oportunidades (formlerly known as Progresa) is a well known initiative in Mexico that provides cash payments to families in exchange for regular school attendance, health clinic visits, and nutritional support.  The program started in 1997 as a program known as Progresa; Oportunidades in its current form began in in 2002. Oportunidades, however, is not the […]

Read the rest of this entry »

Calculating Multifactor Productivity

What is multifactor productivity? Multifactor productivity (MFP) is a measure of real output per combined unit of labor and capital, reflecting the contributions of all factors of production.  A change in multifactor productivity reflects the change in output that cannot be accounted for by the change in combined inputs. As a result, multifactor productivity measures […]

Read the rest of this entry »

Defining a Hospital Catchment Area

From what areas does a hospital draw on to fill its beds?  There have been many attempts to define a hospital’s catchment area.  The Dartmouth Atlas Group uses hospital referral regions (HRRs) and hospital service areas (HSAs). One method is to determine a minimum admission rate for a given geographic unit (e.g., county, census tract, […]

Read the rest of this entry »

Local Labor Markets and Agglomeration Economies

If there is a boost in demand for a certain product, how will that affect wages?  This seems like a straightforward question.  However, a working paper by Enrico Moretti (2010) takes this analysis a step further by examining how labor market shocks affect the spatial component of the labor markets. “In general equilibrium, a shock […]

Read the rest of this entry »

Measuring Variation in Labor Costs for the NHS

The cost of running a hospital in New York City is much higher than running a hospital in Bozeman, Montana.  To take into account these cost differences, the Centers for Medicare and Medicaid Services (CMS) has created a wage index to adjust the inpatient prospective payment system (IPPS) for differences in labor costs. However, the […]

Read the rest of this entry »

Proposed Reforms to Medicare’s Hospital Wage Index

A hospital in New York City faces higher labor costs than a hospital in Billings, Montana. To take into account these cost differences, Medicare adjusts hospital payments to reflect these cost differences using a hospital wage index. As currently constructed, however, many hospitals petition to be included in labor markets where they would receive a […]

Read the rest of this entry »

Does a bad economy increase blood donation?

A bad economy should increase blood donation.  As more individuals lose their job, they now have more free time to donate blood.  The opportunity cost of their time is lower, since they don’t have to miss work to donate blood.  A bad economy also creates more sympathy for those in need; thus, donor morale may […]

Read the rest of this entry »

Obama’s Economic Case for Health Reform

Health Reform is at the top of President Obama’s list of reform efforts. Mr. Obama claims that not only will health reform improve the physical health of the nation, it will also improve its economic health. In a Council of Economic Advisers Report, President Obama lists three reasons why slowing health care costs and expanding […]

Read the rest of this entry »

Job Stretch

In this blog, I have frequently discussed the concept of Job Lock.  Job Lock occurs when you don’t leave a job that you wish to leave (either because it is low paying or you do not like the work) simply because you do not want to lose your health insurance.  Leaving your current job for […]

Read the rest of this entry »