PHAR 422 - Lecture 3: Resource Use and Costs: Societal Perspective

societal perspective includes

productivity loss, cost of informal care

productivity is function based on

capital and labour (quality + quantity) inputs

productivity is measure of

output per unit of input

productivity loss

output loss due to reduced labour due to poor health

productivity loss includes

employment status change, absenteeism, presenteeism

measuring paid work productivity loss

1. measure time loss due to poor health

2. value time loss

presenteeism direct estimate of time loss

HLQ, VOLP

presenteeism on 0-10 scale

WPAI

presenteeism multidimensional questionnaire

WLQ

calculating using VOLP

(time taken to complete work past 7 days - time taken normally to complete task)/ ((time taken to complete work past 7 days)

calculating WPAI

percentage impairment = number recorded on scale * hours worked in past 7 days

WLQ calculations

WLQ score based on answers, p = 1-(1/exp(WLQ index))

WPAI skews

high (right)

HLQ skews

low (left)

cost of caregiving

usually free labour = calculate their time lost from when they could’ve been working

estimating loss for caregivers

opportunity cost (forgone market wage if they worked), replacement method (cost of paying formal care), willingness to pay (caregiver places value on their time)