Bad Habit's Price: Economic Consequences of Excessive Weight

Bad Habit's Price: Economic Consequences of Excessive Weight

A Review of the Literature

Steady growth in the number of overweight people in the last 10-15 years causes many economic effects, such as lower wages, discrimination against fat people (Cawley, 2004, p. 451). Cawley thinks, that obesity lowers wages. The reasons are lower productivity because of overweight and discrimination in the workplace. The impact of obesity on wages may lead to unpleasant economic consequences, therefore, it is an important assumption for research.

Moreover, obesity might cause different diseases which adversely affect human health and may cause increase in mortality. Lallukka (2008) conducted a detailed study of the power of overweight on human health. Various diseases are forcing people to go to hospitals and to spend money on medication. Dee (2014) studied direct and indirect costs. Increasing costs of individuals for health care will affect the consumption of other foods that will impact on production and on the economy as a whole. Besides the physical, mental and social health consequences of the obesity epidemic, another concern is the economic burden related to overweight and obesity (Wenig, Knopf & Menn, 2011). In the case of death of a person due to illness caused by obesity, it will have an impact on the demographic situation in the country. Ruhm suggests, that "obese have substantially elevated mortality" (Ruhm, 2007, pp. 1-2).

Obesity is a problem not just one group of people. This disease is observed not only in women but also in men, too, at any age. "It affects people of all ages and socio-economic groups, and of both genders, and is not restricted to developed countries" (Rosin, 2008, p. 617). As it may be seen, the problem of excess weight is widely studied by foreign authors, especially for US population. There are some researchers who are also engaged in studying the effects of obesity on the Russian economy. Kolosnitsyna and Berdnikova (2009) concerned with evaluating the cost of treatment of diseases caused by obesity. Kolosnitsyna  and Sitdikov (2012) considered one of the determinants of a healthy lifestyle proper nutrition, and as a consequence, the lack of excess weight. Despite the fact that in Russia the problem of excess weight with each passing year more and more beginning to be studied, the consequences for the Russian economy remains under-researched. Determination of the possible consequences of being overweight will contribute to the development of social and economic programs to combat excess weight and eliminate the negative impact on the economy.

Various studies have been based on different data. In addition, various research methods and models used by researches. Wenig et al. used data from Examination Survey for Children and Adolescents (KiGGS) in Germany (p.2). Statistical analysis was used in this survey. Cawley and Meyerhoefer (2010) used database of Medical Expenditure Panel Survey. They chose Method of Instrumental Variables for analysis effect of obesity on medical costs (Cawley & Meyerhoefer, 2010, pp.4-5). Cawley and Burkhauser (2006) based their study on National Health and Nutrition Examination Survey III (NHANES III). They used "Method of Calculating Total body fat (TBF) and Percent body fat (PBF)" for evaluating obesity (Cawley & Burkhauser, 2006, pp.10-11). It might be seen, that there are different methods and databases for making researches, so, it may contribute to make extensive view based on the works of other researchers.