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, and Kelly, Simon (2013) The personal and national costs of CVD: impacts on income, taxes, government support payments and GDP due to lost labour force participation. International Journal of Cardiology, 166 (1). pp. 68-71.

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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.


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.


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.


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.

Item ID: 41229
Item Type: Article (Research - C1)
ISSN: 1874-1754
Keywords: health economics; cvd; wealth; labour force participation; income; gdp
Date Deposited: 11 Nov 2015 04:08
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140208 Health Economics @ 100%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910209 Preference, Behaviour and Welfare @ 50%
92 HEALTH > 9204 Public Health (excl. Specific Population Health) > 920408 Health Status (e.g. Indicators of Well-Being) @ 50%
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