The estimation of the health production function for low-income working men

Health is an important variable that determines an individual's economic as well as noneconomic well-being. A healthy individual will be more productive, will contribute more toward a nation's economy, and, keeping other things constant, will have a better life overall than a sick individual. But for a low-income individual, health could be even more crucial since it could be a major factor in perpetuating his poverty. If, as a part of our social policy, we would want to improve the economic well-being of poor people, their health in general would need attention. This paper studies the production of health and the demand for medical care of low-income working men. Low-income working men are "medically indigent" because they are not eligible for Medicaid and are not adequately covered by insurance. This study provides insight into what role medical, preventive, and curative care--as well as other socioeconomic variables, such as income and education--plays in the production of the health of low-income men. It also shows the impact of price, income, and other control variables on the demand for medical care.