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356525

Returns to Health Improvement: The Impact on Wages in Egypt’s Private Sector

Article

Last updated: 05 Jan 2025

Subjects

-

Tags

Business and economics education

Abstract

Health is hypothesised to positively affect wages of individuals through an enhancement of their productivity levels. Using a self-perceived measure of health, which rates an individual's own health state from excellent to very bad, based on the postulated positive relationship between better health and productivity improvements, and Egypt's labour market data for the years 2012 and 2018 and utilising a Maximum Likelihood Estimation method, we address two issues, the endogeneity of health in the estimation of wages and a sample selection bias. Our findings indicate the great value that better health has in enhancing wage levels in Egypt's private sector. Also, we find that overlooking the endogeneity of health under-estimates its effect on wages, but the effect of the sample selection bias seems insignificant. Thus, the improvement of health states is likely to be beneficial in improving labour market outcomes, in terms of wages as well as labour productivity, in Egypt.

DOI

10.21608/ijmsbe.2024.232344.1001

Keywords

Labour productivity, wages, Health, Endogeneity, sample selection

Authors

First Name

Yasmine

Last Name

Shemeis

MiddleName

-

Affiliation

Business School, University of Hertfordshire Hosted by the Global Academic Foundation

Email

y.shemeis@gaf.edu.eg

City

-

Orcid

-

Volume

6

Article Issue

2

Related Issue

45977

Issue Date

2023-12-01

Receive Date

2023-08-28

Publish Date

2023-12-01

Page Start

88

Page End

118

Print ISSN

2735-5438

Online ISSN

2735-5446

Link

https://ijmsbe.journals.ekb.eg/article_356525.html

Detail API

https://ijmsbe.journals.ekb.eg/service?article_code=356525

Order

356,525

Type

Original Article

Type Code

1,998

Publication Type

Journal

Publication Title

International Journal of Multidisciplinary Studies on Management, Business, and Economy

Publication Link

https://ijmsbe.journals.ekb.eg/

MainTitle

Returns to Health Improvement: The Impact on Wages in Egypt’s Private Sector

Details

Type

Article

Created At

28 Dec 2024