Keywords
Labour Productivity
Health Expenditure
Population Growth
Sub-Saharan Africa
Abstract
This study examines the impact of health inequality on labour productivity in Sub-Saharan Africa using Panel Autoregressive Distributed Lag (Panel ARDL) techniques across 46 Sub-Saharan African countries. The study was motivated by the growing concern over persistent health disparities and their implications for labour market performance and economic development in the region. Data were analyzed to evaluate the relationship between health inequality, health expenditure, population growth, and labour productivity. The findings revealed that health inequality has a significant negative relationship with labour productivity, indicating that disparities in health outcomes reduce workers’ efficiency and productive capacity. Similarly, health expenditure was found to negatively influence labour productivity, suggesting possible inefficiencies in healthcare spending and weak healthcare delivery systems within the region. In contrast, population growth exhibited a positive relationship with labour productivity, implying that an increasing population may enhance labour supply and economic activities when properly harnessed. The study concludes that health inequality and ineffective healthcare expenditure constitute major impediments to labour productivity in Sub-Saharan Africa, while population growth can serve as a productive asset if adequately managed. Based on these findings, the study recommends the design and implementation of multi-level health equity policies aimed at reducing disparities in healthcare access, quality, and outcomes across income groups, geographic regions, and gender. The study further recommends expanding primary healthcare facilities, mobile clinics, and outreach services in rural and underserved communities, alongside strengthening social health insurance schemes, subsidized healthcare programs, and conditional cash transfer initiatives to reduce financial barriers to healthcare access and improve labour productivity in the region.
Jel Code: J24, J21,O47, C23
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