Socioeconomic Burden of Major Diseases in Eight Latin American Countries

OBJECTIVES: Health investments impact labor supply by affecting workforce health and capabilities. We introduce a novel methodology combining value chain effects and health economics to show how health investments drive economic development. Using the concept of human capital— abilities, skills, knowledge, and motivation—we estimate the monetary value of the socioeconomic (SoC) burden of disease. It reflects how disease reduces labor supply by impairing individuals' capital utilization. The method is applied to the Brazilian case for cardiovascular, neoplasms, ischemic heart disease, lower respiratory infections, breast cancer, type 2 diabetes, and migraine.

METHODS: We assumed that years lost due to disability or mortality are non-productive, where Years Lived with Disability (YLDs) captures presenteeism and absenteeism, and Years of Life Lost (YLLs) premature mortality. Two approaches are considered: the Human Capital Approach (HCA), which assumes an irreplaceable loss of productivity upon premature death, and the Friction Cost Approach (FCA), which assumes that within a year, the deceased's tasks are redistributed, absorbed, or adapted within the production process. Moreover, using Input-Output matrices, we estimate the direct economic effects and calculate spillover effects in adjacent economic sectors and induced effects along value chains. Additionally, we addressed both paid and unpaid work.

RESULTS: In 2022, Brazil's GDP loss due to diseases was 4.1% ($77.1 billion) under the FCA and 7.1% ($135.9 billion) under the HCA. Migraines and type 2 diabetes were the top contributors under the FCA. Under the HCA, cardiovascular disease and migraines have the highest burden.

CONCLUSIONS: Decreases in labor supply not only hinder economic growth but also exacerbate inequalities and adversely affect vulnerable populations, as seen in Brazil. Key questions arise: What is the socioeconomic value of investing in health? Which healthcare strategies promote economic development? By measuring the SoC burden, we bring light to these questions and help policymakers prioritize budget allocations.