The Causal Relationship between Health Indicators and Labor Productivity in Iran

Promoting community health increases labor productivity through various ways. On the other hand, an increase in labor productivity can improve health outcomes. Accordingly, the main purpose of this study was to investigate the causal relationship between health indicators and labor productivity in Iran.

The present analytical study, using time series data from 2000-2015, examines the Granger causality relationship between health indicators (including life expectancy and health expenditure share of GDP) and labor productivity index. The Toda and Yamamoto Granger causality test were used. Also, the statistical analyzes performed using the Eviews9.0 software.

According to the results, there is a strong causal relationship between health indicators and labor productivity at 99% confidence level. Also, the existence of causality relation from labor productivity to health indicators is confirmed at 90% confidence level. In general, the existence of a two-way causal relationship between health indicators and labor productivity is confirmed.

Adopting appropriate policies to improve the health and labor productivity can help to promoting another index in the country.