1. The Contribution of Health
to the Economy
in the European Union
Marc Suhrcke
WHO Venice Office
msu@ihd.euro.who.int
Based on a report by
Marc Suhrcke
Martin McKee
Regina Sauto Arce
Svetla Tsolova
Jorgen Mortensen

2. Outline
1. Why this report?
2. The economic benefits of
health in EU countries
3. What next?

3. 1. Why this report?
2. The economic benefits of
health in EU countries
3. What next?

4. Our starting point
Better health
promotes economic
growth in poor
countries
Can we assume that
this is also true
in HIGH-income
countries?

5. Our (modest) contribution
Suhrcke M, McKee M,
Sauto Arce R, Tsolva S,
Mortensen J.
The Contribution of
Health to the
Economy in the
European Union.
Brussels: European
Commission, 2005.
Available on the European Commission website

6. Different Burden of Disease
Source: WHO, World Health Report 2002

7. Different Means for Growth
Physical work is
much less
important in
generating wealth

8. 1. Why this report?
2. The economic benefits of
health in EU countries
3. What next?

9. Relevant channels from health
to the economy: a simple framework
Labour
Productivity
Labour Supply
HEALTH Education ECONOMY
Saving

10. The Evidence
Cost-of-Illness
Microeconomic: the effect at the
individual & household level
Macroeconomic: the effect on the
national economy

11. Cost of Illness:
Expenditure on coronary heart disease per
100,000 persons (€ million, 1999 prices)
Direct and social care
25 costs
20 Employment/ informal
costs
15
10
5
0
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12. Microeconomic Evidence
Wages and earnings
Hours worked
Early retirement
Labour force participation
Labour supply by relatives of those in poor
health
Personal investment in education
Saving

13. Macroeconomic evidence
Historical contribution of health to
economic development
- 30-40% of today’s economic wealth
- In some cases health > education
Cross-country studies
- Worldwide samples: One year life
expectancy increase corresponds to 4%
GDP growth
- High-income countries: CVD decrease
10% corresponds to 1% GDP growth

14. ‘Full income’ – a broader perspective EU
countries (1990-1998)

15. 1. Why this report?
2. The economic benefits of
health in EU countries
3. What next?

16. More new and directly European
evidence
Economic rationale for
government intervention
Cost-benefit evidence of
intervention (esp prevention)