According to a new study conducted by NYU Abu Dhabi, medications for diabetes treatment and weight management, including Ozempic and Wegovy, may bring economic benefits that extend beyond improving patient health. It was found that the use of these treatments is associated with increased employment and longer working hours.
Researchers used nationwide data from Denmark and found that people receiving treatment for type 2 diabetes were more likely to be employed, while those taking weight management drugs increased their working hours if they were already employed.
The study examined two drugs: semaglutide, marketed as Ozempic (for type 2 diabetes) and Wegovy (for weight control). Both medications belong to the GLP-1 receptor agonist class, which mimics the natural hormone regulating appetite and blood sugar levels.
The analysis was based on Danish population records from 2018 to 2024, examining changes in earnings, working hours, and employment before and after patients began therapy. Statistical methods were used to separate the effects of the treatment itself from general labor market changes.
Among patients receiving subsidized Ozempic treatment for diabetes, it was found that the therapy increased the probability of employment by 4.1 percentage points. Furthermore, this group demonstrated an increase in working hours by 19.5 hours per quarter.
However, the results were different for patients who self-paid for Wegovy to correct their weight. Although the drug did not lead to a significant increase in the probability of employment, those who were already employed increased their workload by an additional 29.7 hours per quarter.
Weda Narasimhan, Assistant Professor of Economics at NYU Abu Dhabi, noted that this data underscores the need to consider the broader economic impact of medications, not just the direct costs. She added that separating employment and working hour analyses allows for a better understanding of the differences in outcomes between treatment groups and potential consequences for individuals and public finances.
Beyond employment issues, scientists investigated whether increased working hours and income could generate additional income through income tax and help offset public healthcare expenditures. In Denmark, Ozempic treatment for diabetes is subsidized, whereas patients using Wegovy for weight control pay the full cost themselves.
According to the study's fiscal analysis, the additional income from income tax related to increased earned income among patients taking these drugs could help cover public expenses for subsidized diabetes treatment.
Raul Santaeulalia-Llopis, an economics lecturer at NYU Abu Dhabi, stated that medical procedures should not be evaluated solely on their clinical outcomes. He emphasized that evaluating only metrics such as weight loss or blood sugar levels overlooks the broader picture, requiring consideration of factors beyond direct medical costs.
He noted that the study shows that when changes in employment, working hours, and subsequent tax revenues are taken into account, the financial calculation changes drastically. Nevertheless, Santaeulalia-Llopis stressed that understanding the broader influence of these drugs requires studying whether they contribute to sustainable lifestyle changes.
He questioned whether GLP-1 is a catalyst for a healthier and self-sustaining lifestyle, or if its economic dividends merely create a new form of pharmaceutical dependence. Santaeulalia-Llopis reported that current research with the Abu Dhabi Department of Health under the Thiqa obesity program is focused on this question.
The findings were published as a discussion paper by the Center for Economic Policy Research (CEPR). By analyzing diabetes treatment and weight control separately, the researchers highlighted how the economic effects of semaglutide can vary depending on the patient's health status, employment status, and method of financing the treatment. The study also suggests that assessing the broader economic impact of such drugs can help policymakers better understand their potential consequences for public finances and healthcare spending.



