The Personal and National Costs of CVD: Impacts on Income, Taxes, Government Support Payments and GDP Due to Lost Labour Force Participation

Deborah Schofield, Rupendra Shrestha, Richard Percival, Megan Passey, Emily Callander, Simon Kelly

    Research output: Contribution to journalArticle

    12 Citations (Scopus)

    Abstract

    Background: CVD has the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow-up on impacts to both the individual and the state. This study aimed to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefit payments and lost GDP as a result of early retirement due to CVD in Australians aged 45-64 in 2009. Methods: Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model. Results: Individuals aged 45 to 64 years who have retired early due to CVD have a median value of total weekly income of only $268 whereas those who are employed full time are likely to have almost five times this. The national aggregate impact of CVD through the loss of labour force participation amongst 45 to 64 year olds, equated to around AU$1.1 billion in lost income, $AU225 million in lost income taxation revenue, AU$85 million in additional government benefit payments, and AU$748 million in lost GDP, in 2009 alone. Conclusions: The costs of CVD to both individuals and the state are considerable. Whilst individuals bear the economic costs of lost income in addition to the burden of the condition itself, the state impacts are loss of productivity from reduced workforce participation, lost income taxation revenue, and increasing government support payments - in addition to direct health care costs
    Original languageEnglish
    Pages (from-to)68-71
    Number of pages4
    JournalInternational Journal of Cardiology
    Volume166
    Issue number1
    DOIs
    Publication statusPublished - 2013

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    Income Tax
    Costs and Cost Analysis
    Taxes
    Retirement
    Health Care Costs
    Caregivers
    Cross-Sectional Studies
    Economics

    Cite this

    Schofield, Deborah ; Shrestha, Rupendra ; Percival, Richard ; Passey, Megan ; Callander, Emily ; Kelly, Simon. / The Personal and National Costs of CVD: Impacts on Income, Taxes, Government Support Payments and GDP Due to Lost Labour Force Participation. In: International Journal of Cardiology. 2013 ; Vol. 166, No. 1. pp. 68-71.
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    title = "The Personal and National Costs of CVD: Impacts on Income, Taxes, Government Support Payments and GDP Due to Lost Labour Force Participation",
    abstract = "Background: CVD has the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow-up on impacts to both the individual and the state. This study aimed to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefit payments and lost GDP as a result of early retirement due to CVD in Australians aged 45-64 in 2009. Methods: Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model. Results: Individuals aged 45 to 64 years who have retired early due to CVD have a median value of total weekly income of only $268 whereas those who are employed full time are likely to have almost five times this. The national aggregate impact of CVD through the loss of labour force participation amongst 45 to 64 year olds, equated to around AU$1.1 billion in lost income, $AU225 million in lost income taxation revenue, AU$85 million in additional government benefit payments, and AU$748 million in lost GDP, in 2009 alone. Conclusions: The costs of CVD to both individuals and the state are considerable. Whilst individuals bear the economic costs of lost income in addition to the burden of the condition itself, the state impacts are loss of productivity from reduced workforce participation, lost income taxation revenue, and increasing government support payments - in addition to direct health care costs",
    author = "Deborah Schofield and Rupendra Shrestha and Richard Percival and Megan Passey and Emily Callander and Simon Kelly",
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    The Personal and National Costs of CVD: Impacts on Income, Taxes, Government Support Payments and GDP Due to Lost Labour Force Participation. / Schofield, Deborah; Shrestha, Rupendra; Percival, Richard; Passey, Megan; Callander, Emily; Kelly, Simon.

    In: International Journal of Cardiology, Vol. 166, No. 1, 2013, p. 68-71.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - The Personal and National Costs of CVD: Impacts on Income, Taxes, Government Support Payments and GDP Due to Lost Labour Force Participation

    AU - Schofield, Deborah

    AU - Shrestha, Rupendra

    AU - Percival, Richard

    AU - Passey, Megan

    AU - Callander, Emily

    AU - Kelly, Simon

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    N2 - Background: CVD has the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow-up on impacts to both the individual and the state. This study aimed to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefit payments and lost GDP as a result of early retirement due to CVD in Australians aged 45-64 in 2009. Methods: Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model. Results: Individuals aged 45 to 64 years who have retired early due to CVD have a median value of total weekly income of only $268 whereas those who are employed full time are likely to have almost five times this. The national aggregate impact of CVD through the loss of labour force participation amongst 45 to 64 year olds, equated to around AU$1.1 billion in lost income, $AU225 million in lost income taxation revenue, AU$85 million in additional government benefit payments, and AU$748 million in lost GDP, in 2009 alone. Conclusions: The costs of CVD to both individuals and the state are considerable. Whilst individuals bear the economic costs of lost income in addition to the burden of the condition itself, the state impacts are loss of productivity from reduced workforce participation, lost income taxation revenue, and increasing government support payments - in addition to direct health care costs

    AB - Background: CVD has the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow-up on impacts to both the individual and the state. This study aimed to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefit payments and lost GDP as a result of early retirement due to CVD in Australians aged 45-64 in 2009. Methods: Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model. Results: Individuals aged 45 to 64 years who have retired early due to CVD have a median value of total weekly income of only $268 whereas those who are employed full time are likely to have almost five times this. The national aggregate impact of CVD through the loss of labour force participation amongst 45 to 64 year olds, equated to around AU$1.1 billion in lost income, $AU225 million in lost income taxation revenue, AU$85 million in additional government benefit payments, and AU$748 million in lost GDP, in 2009 alone. Conclusions: The costs of CVD to both individuals and the state are considerable. Whilst individuals bear the economic costs of lost income in addition to the burden of the condition itself, the state impacts are loss of productivity from reduced workforce participation, lost income taxation revenue, and increasing government support payments - in addition to direct health care costs

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