Business School news

In a recent keynote at the University of Edinburgh’s New Frontiers in Health and Social Care event, Professor Chirantan Chatterjee presented his groundbreaking research on the impact of women’s income on healthcare spending in India.  

Using extensive data from household surveys and hospital records, Professor Chatterjee discovered a surprising trend: when women’s take-home pay increases, their overall healthcare spending decreases. This is a stark contrast to the common assumption that higher income leads to more spending on health services. 

His research highlights the unique role of gender in healthcare spending. While existing studies often consider healthcare a ‘normal good'— something people spend more on as their income rises — Chatterjee's findings suggest otherwise. For women in developing countries, healthcare products and services are ‘non-normal’ goods. Their spending habits don’t follow traditional economic theories. 

Social and cultural norms are a key factor behind these findings. Women in developing countries often prioritise their family’s needs over their own. This means that when their income increases, they tend to allocate more resources to their children’s health and education rather than their own healthcare. The research also examines how changes in women’s take-home salaries from adjustments in provident fund contributions impact healthcare spending. Surprisingly, the rise in their disposable income correlates with an 11.2% reduction in women’s overall healthcare spending.  

Prof Chatterjee’s research reveals the intricate connection between income, gender, and healthcare demand. He advocates for policymakers to give greater attention to gender dynamics in their economic and healthcare strategies. 

To learn more, you can access Professor Chatterjee’s full recording from the event, here.