Labor Supply and Health

Labor supply refers to the total number of hours that workers are willing and able to work at various wage levels. Health plays a crucial role in this context, as healthier individuals tend to be more productive and are more likely to participate in the workforce. Good health reduces absenteeism and lowers healthcare costs for both employees and employers. Conversely, poor health can limit job opportunities, decrease working hours, and impact overall economic productivity. Thus, there is a significant link between a population’s health and the availability of labor in the economy.