Recent evidence supports the view that education makes one a more efficient producer of health (Lleras-Muney, 2005). Knowing that compulsory education laws came into being in various places at various times in the twentieth century, she reasoned that the related birth cohorts from that era would
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efficient producers of their own health. Cutler and Lleras-Muney (2006) add further support in their recent work by showing that education is associated statistically with better reasoned choices of health related behaviors. One finds as well that education plays a stronger role in health for cases where new medical knowledge is more important.
CONCLUSIONS
In this chapter, we investigated many topics related both directly and indirectly to the production of health. The health production function exhibits the law of diminishing marginal returns. While the total contribution of health care is substantial, the marginal product is often small. Historically, we found that much of the decline in mortality rates occurred prior to the introduction of specific,
effective medical interventions. Thus, historically the contributions of health care, at least as provided by the health practitioner, were probably small until well into the twentieth century. The small, modern-day marginal product of health care is statistically significant. Health care benefits people differentially and is generally more productive on the margin for women and blacks. Similarly, certain categories of health care have greater marginal effects on the population than others; prenatal care programs are examples of the more productive categories. Education has a strong association with health status. Whether this means that it causally improves health has long been an issue of contention. Recent research supports the view that education improves health.
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