Effects of public health insurance on labor supply in rural China

2017 ◽  
Vol 9 (4) ◽  
pp. 623-642 ◽  
Author(s):  
Zheng Shen ◽  
Marie Parker ◽  
Derek Brown ◽  
Xiangming Fang

Purpose Since the implementation of the New Cooperative Medical Scheme (NCMS) in 2003, this program has experienced rapid growth. Even so, little is known about the association between NCMS expansion and labor force supply among rural residents in China. The purpose of this paper is to examine the effects of the NCMS on labor force supply for rural Chinese populations. Design/methodology/approach Using data from the China Health and Nutrition Survey (CHNS), a difference-in-differences (DD) approach is employed to estimate the impact of NCMS expansion on labor supply outcomes, including hours of worked in agriculture, off-farm labor force participation, not working, and weeks off due to illness. A number of falsification tests are conducted to identify whether the assumption of common trends of DD analyses is satisfied. The robustness of results is checked through additional estimation, including panel fixed effects and instrumental variable approach. Findings Results show that the NCMS expansion has a positive effect on the hours of worked in agriculture and off-farm labor force participation, and reduces the likelihood of not working and weeks off due to illness. The effect on hours of agricultural production is larger for male adults, those aged 50 or more, and individuals in low-income families. This study demonstrates the importance of potential health improvements from public health insurance in promoting rural residents’ labor productivity. Originality/value Studies concerning the effects of public health insurance on labor supply in developing countries remain limited. The findings of this study provide important insights into how public health insurance programs, like the NCMS, may affect patterns of labor supply among rural residents, and can help policymakers improve health policies aimed to reduce the number of uninsured farmers while maintaining high levels of labor supply, productivity, and health status among the most vulnerable of populations.

Author(s):  
Jin Liu ◽  
Yufeng Lu ◽  
Qing Xu ◽  
Qing Yang

The major source of income of Chinese farmers is non-farm income, especially wages and salaries. Based on the economics theory of health and healthcare, their non-farm labor supply behavior could be affected by health insurance policies. The work presented in this paper focuses on the impact of the New Rural Cooperative Medical Scheme (NRCMS) on farmers’ non-farm labor supply behavior in China. A four-part model regression approach was used to examine the relationship. Our dataset comprised of 8273 people, aged 45 or above, from the China Health and Retirement Longitudinal Study (CHARLS) conducted in 2011 and 2013. The empirical results showed that NRCMS significantly reduced non-farm labor force participation and employment. Compared to non-participants of the NRCMS, the non-farmer labor time of these participants reduced, but the supplementary medical insurance and immediate reimbursement of the NRCMS increased the participants’ non-farm labor time. Our results have contributed to the reform of China’s public health insurance and farms’ income growth, and it would be necessary to actively promote immediate reimbursement, gradually simplify reimbursement procedures for medical treatment in non-registered places, and eliminate the non-portability of NRCMS.


1994 ◽  
Vol 54 (1) ◽  
pp. 64-84 ◽  
Author(s):  
T. Aldrich Finegan ◽  
Robert A. Margo

Economic analysis of the labor supply of married women has long emphasized the impact of the unemployment of husbands—the added worker effect. This article re-examines the magnitude of the added worker effect in the waning years of the Great Depression. Previous studies of the labor supply of married women during this period failed to take account of various institutional features of New Deal work relief programs, which reduced the size of the added worker effect.


2010 ◽  
Vol 46 (1p2) ◽  
pp. 319-335 ◽  
Author(s):  
Michael R. Cousineau ◽  
Gregory D. Stevens ◽  
Albert Farias

Significance A congressional battle looms over Biden’s healthcare reform plans: elements are opposed by Republicans and progressive Democrats. Biden proposes to offer federally provided health insurance to all US citizens. Impacts Biden will use subsequent COVID-19 aid packages to advance his healthcare agenda, including funding community health centres. Biden will likely push to allow more medicine purchases from abroad, creating an opportunity for European and Asian pharma firms. Healthcare tax credits would make private healthcare more attractive and affordable for consumers. A public health insurance option would reduce the insurance risks facing private health insurers. The pharma industry will expend vast sums bankrolling politicians and lobbyists to fight Biden’s healthcare plans.


Author(s):  
Akinori Tomohara ◽  
Ho Jin Lee

The literature has explored the effects of welfare policy reforms on womens labor supply. However, a comprehensive analysis has not been conducted regarding the effects of individual policy instruments in public assistance programs. This paper examines whether policy instruments in the public health insurance program affect womens labor supply decisions, specifically, after we control for the effects of policy instruments in the welfare program. The results indicate that, on average, public health insurance policy instruments did not affect womens labor supply. Our analysis implies that, regarding the recent reform on public assistance programs, the crowd-out of private health insurance for public health insurance is less likely to arise via a reduced labor supply channel.


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