Health Capital and Worker Productivity in the Moroccan Regions: A Dynamic Panel Data Model

Abstract

This article is part of a national context marked by the pursuit of the Moroccan government to ensure the right to health care and medical coverage[1]. It’s part of an international context guided by the 17 SDGs Declaration[2].

As well, in the empirical studies, several works have been devoted to the study of the determinants of Productivity in Morocco. However, all of the analyses carried out by these works have remained at a global macroeconomic level without taking into consideration the data from the regions and the qualitative dimensions of health and education.

This study investigates the impact of health on worker productivity for a sample of 16 Moroccan regions from 1994 to 2019. Firstly, to estimate this relationship, we use two proxies that take into account the quantitative and the qualitative dimensions of health: the number of doctors per capita and the number of consultations of public physicians reported to the labor force by region.

The empirical methodology is based firstly on the employ of both Pedroni and Kao cointegration tests and the Dumitrescu and Hurlin causality test. Secondly, we apply the regression of an endogenous growth model augmented by human capital to explain worker productivity.

The results of the cointegration tests accept the existence of long-term relationship between proxies of health and the productivity of Moroccan workers. However, Dumitrescu_Hurlin causality test results accept the short-term two-way causality relationship just for one proxy of health. The results of the regression assert that only the proxy of quality of public health capital affects positively and significantly worker productivity.

Faced with these results, and to improve worker productivity, the authorities must make more effort to improve the efficiency of public health capital. It is not enough to increase the number of human resources but it is necessary to improve the quality of health service and facility access.

Keywords: Health capital, Worker Productivity, regions and Morocco.

JEL Classification: I15

Paper type: Empirical research

[1]The requirements of the new constitution of 2011 specified the national context, which has devoted rights directly related to the formation of the human capital.

[2]Declaration of the United Nations of the 17 Sustainable Development Goals (SDGs) in 2015.