Chris Sampson’s journal round-up for 6th January 2020

Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot. If you’d like to write one of our weekly journal round-ups, get in touch.

Child sleep and mother labour market outcomes. Journal of Health Economics [PubMed] [RePEc] Published January 2020

It’s pretty clear that sleep is important to almost all aspects of our lives and our well-being. So it is perhaps surprising that economists have paid relatively little attention to the ways in which the quality of sleep influences the ‘economic’ aspects of our lives. Part of the explanation might be that almost anything that you can imagine having an effect on your sleep is also likely to be affected by your sleep. Identifying causality is a challenge. This paper shows us how it’s done.

The study is focussed on the relationship between sleep and labour market outcomes in new mothers. There’s good reason to care about new mothers’ sleep because many new mothers report that lack of sleep is a problem and many suffer from mental and physical health problems that might relate to this. But the major benefit to this study is that the context provides a very nice instrument to help identify causality – children’s sleep. The study uses data from the Avon Longitudinal Study of Parents and Children (ALSPAC), which seems like an impressive data set. The study recruited 14,541 pregnant women with due dates between 1991 and 1993, collecting data on mothers’ and children’s sleep quality and mothers’ labour market activity. The authors demonstrate that children’s sleep (in terms of duration and disturbances) affects the amount of sleep that mothers get. No surprise there. They then demonstrate that the amount of sleep that mothers get affects their labour market outcomes, in terms of their likelihood of being in employment, the number of hours they work, and household income. The authors also demonstrate that children’s sleep quality does not have a direct impact on mothers’ labour market outcomes except through its effect on mothers’ sleep. The causal mechanism seems difficult to refute.

Using a two-stage least squares model with a child’s sleep as an instrument for their mother’s sleep, the authors estimate the effect of mothers’ sleep on labour market outcomes. On average, a 30-minute increase in a mother’s sleep duration increases the number of hours she works by 8.3% and increases household income by 3.1%. But the study goes further (much further) by identifying the potential mechanisms for this effect, with numerous exploratory analyses. Less sleep makes mothers more likely to self-report having problems at work. It also makes mothers less likely to work full-time. Going even further, the authors test the impact of the UK Employment Rights Act 1996, which gave mothers the right to request flexible working. The effect of the Act was to reduce the impact of mothers’ sleep duration on labour market outcomes, with a 6 percentage points lower probability that mothers drop out of the labour force.

My only criticism of this paper is that the copy-editing is pretty poor! There are so many things in this study that are interesting in their own right but also signal need for further research. Unsurprisingly, the study identifies gender inequalities. No wonder men’s wages increase while women’s plateau. Personally, I don’t much care about labour market outcomes except insofar as they affect individuals’ well-being. Thanks to the impressive data set, the study can also show that the impact on women’s labour market outcomes is not simply a response to changing priorities with respect to work, implying that it is actually a problem. The study provides a lot of food for thought for policy-makers.

Health years in total: a new health objective function for cost-effectiveness analysis. Value in Health Published 23rd December 2019

It’s common for me to complain about papers on this blog, usually in relation to one of my (many) pet peeves. This paper is in a different category. It’s dangerous. I’m angry.

The authors introduce the concept of ‘health years in total’. It’s a simple idea that involves separating the QA and the LY parts of the QALY in order to make quality of life and life years additive instead of multiplicative. This creates the possibility of attaching value to life years over and above their value in terms of the quality of life that is experienced in them. ‘Health years’ can be generated at a rate of two per year because each life year is worth 1 and that 1 is added to what the authors call a ‘modified QALY’. This ‘modified QALY’ is based on the supposition that the number of life years in its estimation corresponds to the maximum number of life years available under any treatment scenario being considered. So, if treatment A provides 2 life years and treatment B provides 3 life years, you multiply the quality of life value of treatment A by 3 years and then add the number of actual life years (i.e. 2). On the face of it, this is as stupid as it sounds.

So why do it? Well, some people don’t like QALYs. A cabal of organisations, supposedly representing patients, has sought to undermine the use of cost-effectiveness analysis. For whatever reason, they have decided to pursue the argument that the QALY discriminates against people with disabilities, or anybody else who happens to be unwell. Depending on the scenario this is either untrue or patently desirable. But the authors of this paper seem happy to entertain the cabal. The foundation for the development of the ‘health years in total’ framework is explicitly based in the equity arguments forwarded by these groups. It’s designed to be a more meaningful alternative to the ‘equal value of life’ measure; a measure that has been used in the US context, which adds a value of 1 to life years regardless of their quality.

The paper does a nice job of illustrating the ‘health years in total’ approach compared with the QALY approach and the ‘equal value of life’ approach. There’s merit in considering alternatives to the QALY model, and there may be value in an ‘additive’ approach that in some way separates the valuation of life years from the valuation of health states. There may even be some ethical justification for the ‘health years in total’ framework. But, if there is, it isn’t provided by this paper. To frame the QALY as discriminatory in the way that the authors do, describing this feature as a ‘limitation’ of the QALY approach, and to present an alternative with no basis in ethics is, at best, foolish. In practice, the ‘health years in total’ calculation would favour life-extending treatments over those that improve health. There are some organisations with vested interests in this. Expect to see ‘health years in total’ obscuring decision-making in the United States in the near future.

The causal effect of education on chronic health conditions in the UK. Journal of Health Economics Published 23rd December 2019

Since the dawn of health economics, researchers have been interested in the ways in which education and health outcomes depend on one another. People with more education tend to be healthier. But identifying causal relationships in this context is almost impossible. Some studies have claimed that education has a positive (causal) effect on both general and specific health outcomes. But there are just as many studies that show no impact. This study attempts to solve the problem by throwing a lot of data at it.

The authors analyse the impact of two sets of reforms in the UK. First, the raising of the school leaving age in 1972, from 15 to 16 years. Second, the broader set of reforms that were implemented in the 1990s that resulted in a major increase in the number of people entering higher education. The study’s weapon is the Quarterly Labour Force Survey (QLFS), which includes over 5 million observations from 1.5 million people. Part of the challenge of identifying the impact of education on health outcomes is that the effects can be expected to be observed over the long-term and can therefore be obscured by other long-term trends. To address this, the authors limit their analyses to people in narrow age ranges in correspondence with the times of the reforms. Thanks to the size of the data set, they still have more than 350,000 observations for each reform. The QLFS asks people to self-report having any of a set of 17 different chronic health conditions. These can be grouped in a variety of ways, or looked at individually. The analysis uses a regression discontinuity framework to test the impact of raising the school leaving age, with birth date acting as an instrument for the number of years spent in education. The analysis of the second reform is less precise, as there is no single discontinuity, so the model identifies variation between the relevant cohorts over the period. The models are used to test a variety of combinations of the chronic condition indicators.

In short, the study finds that education does not seem to have a causal effect on health, in terms of the number of chronic conditions or the probability of having any chronic condition. But, even with their massive data set, the authors cannot exclude the possibility that education does have an effect on health (whether positive or negative). This non-finding is consistent across both reforms and is robust to various specifications. There is one potentially important exception to this. Diabetes. Looking at the school leaving age reform, an additional year of schooling reduces the likelihood of having diabetes by 3.6 percentage points. Given the potential for diabetes to depend heavily on an individual’s behaviour and choices, this seems to make sense. Kids, stay in school. Just don’t do it for the good of your health.

Credits

Chris Sampson’s journal round-up for 5th March 2018

Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot. If you’d like to write one of our weekly journal round-ups, get in touch.

Healthy working days: the (positive) effect of work effort on occupational health from a human capital approach. Social Science & Medicine Published 28th February 2018

If you look at the literature on the determinants of subjective well-being (or happiness), you’ll see that unemployment is often cited as having a big negative impact. The same sometimes applies for its impact on health, but here – of course – the causality is difficult to tease apart. Then, in research that digs deeper, looking at hours worked and different types of jobs, we see less conclusive results. In this paper, the authors start by asserting that the standard approach in labour economics (on which I’m not qualified to comment) is to assume that there is a negative association between work effort and health. This study extends the framework by allowing for positive effects of work that are related to individuals’ characteristics and working conditions, and where health is determined in a Grossman-style model of health capital that accounts for work effort in the rate of health depreciation. This model is used to examine health as a function of work effort (as indicated by hours worked) in a single wave of the European Working Conditions Survey (EWCS) from 2010 for 15 EU member states. Key items from the EWCS included in this study are questions such as “does your work affect your health or not?”, “how is your health in general?”, and “how many hours do you usually work per week?”. Working conditions are taken into account by looking at data on shift working and the need to wear protective equipment. One of the main findings of the study is that – with good working conditions – greater work effort can improve health. The Marxist in me is not very satisfied with this. We need to ask the question, compared to what? Working fewer hours? For most people, that simply isn’t an option. Aren’t the people who work fewer hours the people who can afford to work fewer hours? No attention is given to the sociological aspects of employment, which are clearly important. The study also shows that overworking or having poorer working conditions reduces health. We also see that, for many groups, longer hours do not negatively impact on health until we reach around 120 hours a week. This fails a good sense check. Who are these people?! I’d be very interested to see if these findings hold for academics. That the key variables are self-reported undermines the conclusions somewhat, as we can expect people to adjust their expectations about work effort and health in accordance with their colleagues. It would be very difficult to avoid a type 2 error (with respect to the negative impact of effort on health) using these variables to represent health and the role of work effort.

Agreement between retrospectively and contemporaneously collected patient-reported outcome measures (PROMs) in hip and knee replacement patients. Quality of Life Research [PubMed] Published 26th February 2018

The use of patient-reported outcomes (PROMs) in elective care in the NHS has been a boon for researchers in our field, providing before-and-after measurement of health-related quality of life so that we can look at the impact of these interventions. But we can’t do this in emergency care because the ‘before’ is never observed – people only show up when they’re in the middle of the emergency. But what if people could accurately recall their pre-emergency health state? There’s some evidence to suggest that people can, so long as the recall period is short. This study looks at NHS PROMs data (n=443), with generic and condition-specific outcomes collected from patients having hip or knee replacements. Patients included in the study were additionally asked to recall their health state 4 weeks prior to surgery. The authors assess the extent to which the contemporary PROM measurements agree with the retrospective measurements, and the extent to which any disagreement relates to age, socioeconomic status, or the length of time to recall. There wasn’t much difference between contemporary and retrospective measurements, though patients reported slightly lower health on the retrospective questionnaires. And there weren’t any compelling differences associated with age or socioeconomic status or the length of recall. These findings are promising, suggesting that we might be able to rely on retrospective PROMs. But the elective surgery context is very different to the emergency context, and I don’t think we can expect the two types of health care to impact recollection in the same way. In this study, responses may also have been influenced by participants’ memories of completing the contemporary questionnaire, and the recall period was very short. But the only way to find out more about the validity of retrospective PROM collection is to do more of it, so hopefully we’ll see more studies asking this question.

Adaptation or recovery after health shocks? Evidence using subjective and objective health measures. Health Economics [PubMed] Published 26th February 2018

People’s expectations about their health can influence their behaviour and determine their future health, so it’s important that we understand people’s expectations and any ways in which they diverge from reality. This paper considers the effect of a health shock on people’s expectations about how long they will live. The authors focus on survival probability, measured objectively (i.e. what actually happens to these patients) and subjectively (i.e. what the patients expect), and the extent to which the latter corresponds to the former. The arguments presented are couched within the concept of hedonic adaptation. So the question is – if post-shock expectations return to pre-shock expectations after a period of time – whether this is because people are recovering from the disease or because they are moving their reference point. Data are drawn from the Health and Retirement Study. Subjective survival probability is scaled to whether individuals expect to survive for 2 years. Cancer, stroke, and myocardial infarction are the health shocks used. The analysis uses some lagged regression models, separate for each of the three diagnoses, with objective and subjective survival probability as the dependent variable. There’s a bit of a jumble of things going on in this paper, with discussions of adaptation, survival, self-assessed health, optimism, and health behaviours. So it’s a bit difficult to see the wood for the trees. But the authors find the effect they’re looking for. Objective survival probability is negatively affected by a health shock, as is subjective survival probability. But then subjective survival starts to return to pre-shock trends whereas objective survival does not. The authors use this finding to suggest that there is adaptation. I’m not sure about this interpretation. To me it seems as if subjective life expectancy is only weakly responsive to changes in objective life expectancy. The findings seem to have more to do with how people process information about their probability of survival than with how they adapt to a situation. So while this is an interesting study about how people process changes in survival probability, I’m not sure what it has to do with adaptation.

3L, 5L, what the L? A NICE conundrum. PharmacoEconomics [PubMed] Published 26th February 2018

In my last round-up, I said I was going to write a follow-up blog post to an editorial on the EQ-5D-5L. I didn’t get round to it, but that’s probably best as there has since been a flurry of other editorials and commentaries on the subject. Here’s one of them. This commentary considers the perspective of NICE in deciding whether to support the use of the EQ-5D-5L and its English value set. The authors point out the differences between the 3L and 5L, namely the descriptive systems and the value sets. Examples of the 5L descriptive system’s advantages are provided: a reduced ceiling effect, reduced clustering, better discriminative ability, and the benefits of doing away with the ‘confined to bed’ level of the mobility domain. Great! On to the value set. There are lots of differences here, with 3 main causes: the data, the preference elicitation methods, and the modelling methods. We can’t immediately determine whether these differences are improvements or not. The authors stress the point that any differences observed will be in large part due to quirks in the original 3L value set rather than in the 5L value set. Nevertheless, the commentary is broadly supportive of a cautionary approach to 5L adoption. I’m not. Time for that follow-up blog post.

Credits

 

Thesis Thursday: Till Seuring

On the third Thursday of every month, we speak to a recent graduate about their thesis and their studies. This month’s guest is Dr Till Seuring who graduated with a PhD from the University of East Anglia. If you would like to suggest a candidate for an upcoming Thesis Thursday, get in touch.

Title
The economics of type 2 diabetes in middle-income countries
Supervisors
Marc Suhrcke, Max Bachmann, Pieter Serneels
Repository link
https://ueaeprints.uea.ac.uk/63278/

What made you want to study the economics of diabetes?

I was diagnosed with type 1 diabetes when I was 18. So while looking for a topic for my master’s thesis in development economics, I was wondering about how big of a problem diabetes – in particular, type 2 diabetes – would be in low- and middle-income countries (LMICs), because I had never heard about it during my studies. Looking for data I found some on Mexico, where, as it turned out, diabetes was a huge problem and ended up writing my master’s thesis on the labour market effects of diabetes in Mexico. After that, I worked at the International Diabetes Federation as a health economist in a junior position for about a year and a half and at one of their conferences met Prof Marc Suhrcke, who is doing a lot of global health and non-communicable disease related work. We stayed in contact and in the end he offered me the possibility to pursue a PhD on diabetes in LMICs. So this is how I ended up at the University of East Anglia in Norwich studying the economics of diabetes.

Which sources of data did you use for your analyses, and how was your experience of using them?

I exclusively used household survey data that was publicly available. In my master’s thesis, I had already worked with the Mexican Family Life Survey, which is quite an extensive household survey covering many socioeconomic as well as health-related topics. I ended up using it for two of my thesis chapters. The nice thing about it is that it has a panel structure now with three waves, and the last waves also included information on HbA1c levels – a biomarker used to infer on blood glucose levels over the last three months – that I could use to detect people with undiagnosed diabetes in the survey. The second source of data was the China Health and Nutrition Survey, which has many of the same qualities, with even more waves of data. There are more and more surveys with high-quality data coming out so it will be exciting to explore them further in the future.

How did you try to identify the effects of diabetes as separate from other influences?

As in many other fields, there is great worry that diabetes might be endogenous when trying to investigate its relationship with economic outcomes. For example, personal characteristics (such as ambition) could affect your likelihood to be employed or your wage, but maybe also your exercise levels and consequently your risk to develop diabetes. Unfortunately, such things are very difficult to measure so that they often remain unobserved. Similarly, changes in income or job status could affect lifestyles that in turn could change the risk to develop diabetes, making estimates prone to selection biases and reverse causality. To deal with this, I used several strategies. In my first paper on Mexico, I used a commonly used instrumental variable strategy. My instrument was parental diabetes and we argued that, given our control variables, it was unrelated to employment status but predicted diabetes in the children due to the genetic component of diabetes. In the second paper on Mexico, I used fixed effects estimation to control for any time-invariant confounding. This strategy does not need an instrument, however, unobserved time-variant confounding or reverse causality may still be a problem. I tackled the latter in my last paper on the effect of diabetes on employment and behavioural outcomes in China, using a methodology mainly used in epidemiology called marginal structural models, which uses inverse probability weighting to account for the selection into diabetes on previous values of the outcomes of interest, e.g. changes in employment status or weight. Of course, in the absence of a true experiment, it still remains difficult to truly establish causality using observational data, so one still needs to be careful to not over-interpret these findings.

The focus of your PhD was on middle-income countries. Does diabetes present particular economic challenges in this setting?

Well, over the last 30 years many middle-income countries, especially in Asia but also Latin America, have gone from diabetes rates much below high-income countries to surpassing them. China today has about 100 million people with diabetes, sporting the largest diabetes population worldwide. While, as countries become richer, first the economically better-off populations tend to have a higher diabetes prevalence, in many middle-income countries diabetes is now affecting, in particular, the middle class and the poor, who often lack the financial resources to access treatment or to even be diagnosed. Consequently, many remain poorly treated and develop diabetes complications that can lead to amputations, loss of vision and cardiovascular problems. Once these complications appear, the associated medical expenditures can represent a very large economic burden, and as I have shown in this thesis, can also lead to income losses because people lose their jobs.

What advice would you give to policymakers looking to minimise the economic burden of diabetes?

The policy question is always the most difficult one, but I’ll try to give some answers. The results of the thesis suggest that there is a considerable economic burden of diabetes which disproportionately affects the poor, the uninsured and women. Further, many people remain undiagnosed and some of the results of the biomarker analysis I conducted in one of my papers suggest that diagnosis likely often happens too late to prevent adverse health outcomes. Therefore, earlier diagnosis may help to reduce the burden, the problem is that once people are diagnosed they will also need treatment, and it appears that even now many do not receive appropriate treatment. Therefore, simply aiming to diagnose more people will not be sufficient. Policymakers in these countries will need to make sure that they will also be able to offer treatment to everybody, in particular the disadvantaged groups. Otherwise, inequities will likely become even greater and healthcare systems even more overburdened. How this can be achieved is another question and more research will be needed. Promising areas could be a greater integration of diabetes treatment into the existing health care systems specialised in treating communicable diseases such as tuberculosis, which often are related to diabetes. This would both improve treatment and likely limit the amount of additional costs. Of course, investments in early life health, nutrition and education will also help to reduce the burden by improving health and thereby economic possibilities, so that people may never become diabetic or at least have better possibilities to cope with the disease.