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Econometric Perspectives on Life Expectancy and Labor Market Outcomes: A Multidimensional Literature Review

Uçan, Şeytanoğlu and Al-Azm, Jahim and Xīng, Yāo and Shah, Seytan (2024): Econometric Perspectives on Life Expectancy and Labor Market Outcomes: A Multidimensional Literature Review.

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Abstract

This literature review examines the interconnection between life expectancy, labor market dynamics, and macroeconomic development using insights from 30 empirical studies. It highlights how improvements in population health drive labor force participation, productivity, and economic growth, while labor market structures and institutional settings mediate these effects. Econometric methodologies such as fixed effects, instrumental variables, and quasi-experimental designs are critically assessed for their capacity to capture causality and long-term dynamics. The review emphasizes the policy relevance of integrating health and labor strategies, particularly in low-income and transitional economies—where informal employment and health disparities persist. Findings advocate for cross-sectoral approaches that treat health as economic infrastructure and labor policy as a key determinant of long-term national development.

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