Could obesity lead to lower pay?

on

Obesity in the News, Obesity Initiative at UGA

Obesity rates vary by income, according to the 2013 F as in Fat annual report, published by the Robert Wood Johnson Foundation and Trust for America’s Health.  However, does obesity actually lead to low wages? Michael Kofoed hopes to find out.

Kofoed, who is an economics doctoral student in the UGA Terry College of Business, is working with the Obesity Initiative to study the influence of obesity on unemployment and wages in the U.S. and Canada.  Companies hoping to be profitable base an employee’s wages on what they contribute to the firm’s productivity, and obesity reduces this productivity, Kofoed told the Athens Banner-Herald.

“If I become less productive because I become less healthy due to obesity, the firm logically will pay me less.”

His study “Is it better to be overweight in Canada or the United States?” also considers whether a country’s insurance system affects wages obese people receive.  According to Kofoed, an employer-based health insurance system, like the U.S. system, means companies pay for their employees’ obesity-related health problems.  In a single-payer system, like Canada’s system, the government pays for health insurance. In this system, obesity may have less of influence on wages because employers don’t pay for obesity-related health problems.

“I’m hoping to show people the connection between their health and their labor market outcome and hope my findings might offer another reason to motivate people to become more healthy,” he said.

Read more in the Athens Banner-Herald article.