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Threshold Effect of Aging Labor Force and Public Health Expenditures on Labor Force Productivity in MENA Countries
Seyed Kamal Sadrghi *1 , Ali Talib Hussein Al-Saadi2
1- University of Tabriz , sadeghiseyedkamal@gmail.com
2- University of Tabriz
Abstract:   (148 Views)
Nowadays, improving productivity, as the most important factor affecting economic growth, has become one of the basic concerns of policymakers. Considering the importance of productivity on the one hand, and the important role of the age composition of labor force and health expenditures on it, on the other hand, this study aims to investigate the relationship between government health expenditures and labor productivity, taking into account the threshold effects of aging labor force participation rate in MENA countries during 2000-2023 applying threshold dynamic and static regression method of panel data. The results show that labor productivity of the previous year has a positive and significant effect on current productivity. Moreover, when old labor force participation rate is lower than 14.40, health spending does not have a significant effect on the productivity, but in the conditions where old labor force participation rate is more than 14.40, health spending has a positive and significant relationship with productivity. Also, based on the results, the variables of FDI and ICT have positive and significant effects, and education and trade openness have negative and significant relationships with labor productivity.
 
Keywords: Labor Productivity, Threshold Regression Method, Old Labor Participation Rate.
     
Type of Study: Research | Subject: health, education, welfare economics
Received: Aug 22 2024 | Accepted: Nov 10 2024
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