Heart Disease and The Economic Contributions of Elderly Men and Women: Evidence from Australia

Macroeconomic forecasts and program evaluations of health service interventions are pessimistic about ageing populations, given their low work participation and high demand for social services. We estimate the impact of heart disease on paid work and the value of unpaid non-market activities of the Australian elderly, using Household, Income and Labour Dynamics in Australia (HILDA) data, finding significant losses in the value of their contributions to adult care and voluntary work. Impacts on non-market contributions of older women were more significant than for older men. A broader perspective on the value of the contributions made by the elderly is needed to enhance efficiency and (gender) equality.