

Recent research on
economic development has identified health as one of the most significant factors separating wealthier nations from
poorer ones. Macroeconomic modeling suggests that health has a
substantial impact on per capita GDP growth and is a critical input to economic development. 1 Malaria alone has been estimated to impose a
1.3 percent penalty on growth per
year. 2 The projected impact of HIV/AIDS on development is equally
dire; many African countries
are expected to lose 10-20 percent of GDP by 2010.3 Tuberculosis (TB) will kill 35 million people in the first two decades of this century, primarily
working-aged adults. 4. 5
Individually and
together, these three diseases are critical to understanding the effects of health
on economic development in the 21st century.
Despite the
growing recognition of the macroeconomic implications of health, the microeconomic mechanisms by which a healthier population contributes to
a country's economic growth
are poorly understood. 6 Among the
potentially important
pathways requiring further study is the impact of adult morbidity on labor
productivity. In other words, how much less productive are sick adults
than healthy ones?
This study is a 2 year pilot study using data that is currently
being collected in Rift Valley
Province, Kenya. This preliminary analysis is part of an ongoing retrospective cohort study on the impact of common adult diseases
(malaria, HIV/AIDS, tuberculosis)
on labor productivity of tea plantation workers.
The main study addresses two key research questions:
PRODUCTIVITY
1)
What is the impact of malaria, HIV/AIDS, and tuberculosis on individual labor
productivity? We will answer this
question by assessing the
relationship between disease and the daily output of tea leaf pluckers working
for two large tea companies
in western Kenya. Changes in productivity resulting from both a plucker's own illness and
that of a spouse (due to the need for care-giving, funeral attendance, etc.) will be analyzed.
ECONOMIC DEVELOPMENT
2) To what extent does
adult morbidity hinder economic development through its impact on wages and profits? Using the results of objective (1) above, we will evaluate the consequences of the three diseases for workers' wages, household income, and the expenses
and revenues of the two agricultural companies that are participating in the study.
STUDY SITE
The study site is a set of 32 tea estates owned by two tea companies located in Kericho District
in Rift Valley Province in the highlands of western Kenya.
The companies are large agro-industrial firms that raise and process tea, primarily for
export. One company employs approximately 11,000
tea pluckers, the other approximately 15,000.
Each company maintains a central hospital and a system of dispensaries and
clinics. The tea companies provide full medical care to all
workers and dependents free of charge at the company dispensaries, clinics, and hospitals and provide paid sick leave.
STUDY POPULATION
Cases are pluckers who have died at company health facilities
of AIDS-related
conditions, tuberculosis, malaria or other natural cause deaths, pluckers with a spouse who
died at company health facilities of any one of these conditions, and pluckers who
were medically retired
due to one of these conditions. Controls are pluckers who were working in the same
fields at the same time as the cases.
DEATHS: Primary data
collection was initiated with the development of a database of all natural cause deaths from both of the company hospitals.
EXCLUSIONS: From this initial
database children under 18 and all workers who were not directly involved in plucking (and
therefore not paid by the kilogram
plucked) are removed from the data set.
CONTROLS: Using the set of known
cases, suitable controls are chosen from the historical work gang records at the tea sites. Controls are chosen from other
pluckers from the same work gangs (units) as the case pluckers. For each illness index case, 4 controls matched by work gang
and day will be selected.
TIME FRAME: Data is extracted for the four years preceding death or medical retirement. For the death of a spouse, data is also extracted for the two months
following the death, when productivity is likely to be affected by funeral attendance and
other family needs.
METHOD OF DATA EXTRACTION: Data is collected directly from the handwritten registers of
daily productivity. A team of data entry staff enter the data into a hand held data
collection device comprised
of a Palm Pilot with spreadsheet software and a keypad attachment. Data can then be
imported onto a computer
and cleaned.


The
Impact of Morbidity on Labor Productivity
in
Rift Valley Province, Kenya
M P
Fox , S B Rosen, W B MacLeod, M Bii, L H Elson, K M Wasunna, J L Simon



Kericho is approximately 300
kilometers (4 hours driving) from Nairobi.

Data Analysis
Medically retired prior
to death
Population Demographics [Freq / Mean (std dev)]
Differences in Plucking and Daily
Wage
Mean Differences in Kilograms
Plucked

Mean Differences in Daily Wage
Other Findings
Differences in Kilograms (kg) Plucked
After adjusting for other covariates, we found a trend towards
a difference but
it did not reach conventional statistical significance. Controls plucked 36.9 kg on average while cases
(deaths) plucked 33 kg (p=.056) over the four years. At the standard union wage rate rate of 4 shilling
per kilograms, this
equates to a difference of 148 shillings as an average daily wage among controls, and an average daily wage
among cases of 132 shilling over the four years of observations.
In the last year of observation before a death, the difference
was even greater and
became statistically significant. Controls had an average of 36.5 kilos plucked, while cases only
averaged 29.7 kilos per day (p=.025). This translates to an average daily wage
for controls of 146 shilling, while cases earned 119 shilling.

We modeled our data using a generalized linear mixed model with
daily output of kilograms plucked as our dependent variable, and estimated a regression equation
of the form:
The b coefficients indicate the impact of each independent variable
on daily output. The
individual-specific intercept (b1i) is intended
to capture the effects of unobserved personal characteristics that affect
productivity.
Within our model we controlled for the following effects:
experience (years of service), age, gender, which tea estate the tea plucker worked on and disease
progression. We also included in our model dummy variables to indicate case/control status and a dummy
variable for the matched set. We modeled time as a random effect and allowed
for a random intercept
in order to account for the high correlation between the repeated observations
on a single plucker over the four years of observation.
We repeated our model again using
only data from the last year of observation to determine the effects of
disease in the final year
before death. We then analyzed the data from only the cases to determine the
effects of disease progression
over time. Finally we looked for statistical differences in leave used and
amount of absenteeism.
Methods of Data Collection
The Issue
Goals of the Study
Study Site and Population
Conclusions
Quantity of Tea Plucked Over 4 Years Before Death (in kilograms)

Quantity of Tea Plucked in the Year Before Death (in
kilograms)


In an unadjusted comparison of cases
and controls, we found a decrease in average daily output over time among cases in the four years before death. This effect
is most pronounced in the final year before death when cases plucked on average 29.4 kilos
while controls plucked
35.6.
On average, cases used 17.9 more sick
days (p<.0001) in the second year before death and 12.0 days (p<.0001) 1 year before death
than did controls. They
also used 8.5 more days of annual leave in the second year before death (p<.002) and 9.6 more annual leave
days 1 year before death (p<.0009) than did controls. Cases were absent
without pay 14.3 days more than controls in the second year before death
(p<.0001) and 15.8 (p<.0001) more days 1 year before death.
In looking at just our cases, we
found that average daily
plucking decreased in the three years preceding death, going from 36.1 kilograms three years before death, to 35.4 kilograms
in the second year before
death to 34.6 kilograms in the last year before death.

While the current results are
preliminary, they provide some of the first empirical estimates of the impact
of common adult illness on labor productivity. Workers on these tea estates in Western Kenya are experiencing a reduction in the
average number of kilograms of tea plucked and an increase in the amount of
absenteeism and leave days taken in the years prior to death as compared to the other members of
their own work gang. As workers are
being allowed to bring helpers with them to pluck when the crop is high, and sick workers may be more likely to
use helpers, the true differences between sick workers and healthy workers may
be underestimated. As workers are expected to pluck a minimum of 32 kg per day, this
decrease in productivity to under 30 kg in the year before death may put sick
workers in jeopardy of losing their jobs. The increase in absenteeism and leave is a financial burden to
the company as total productivity declines.
In addition since the companies provides medical care and
hospitalization to their employees, the increasing burden of disease also affects company
profitability. By measuring the financial impacts that diseases have on labor
productivity, we hope to make an economic argument for greater investments in
prevention and care initiatives. If
business is to really join the War on AIDS, we need to be able to make
economic-based arguments for their heightened participation or they will simply shift the burden
onto the public sector and households.
1
Bloom DE, Canning D: The health and wealth of nations. Science 2000;287:1207-1209.
2 Gallup, JL and Sachs, JD. The Economic Burden of Malaria.
1998. Center for International
Development at Harvard University.
3
National Intelligence Council. The global infectious disease threat and
its implications for the United States. 2000. National Intelligence Estimate
99-17D.
4
Murray C, Styblo K, Rouillon A: Tuberculosis, in Jamison DT, Mosley WH,
Measham AR, Bobadilla JL (eds): Disease control priorities in developing countries. Oxford, Oxford University Press for the
World Bank; 1993:233-259.
5 WHO.
Global tuberculosis control: WHO
report 2000. WHO/CDS/TB/2000.275.
6
Collier P, Gunning JW: Explaining African Economic Performance. Journal of Economic Literature 1999; 37:64-111.

This project was funded by a grant from
the Fogarty International Center of the National Institutes of Health, Grant
Number TW05605-02