Income Effect Of Healthy Human Capital

The income of residents is an important issue related to the sustainable development of the country.With the rapid development of China’s economy,the income level of residents is rising,but the income gap between residents in different regions is expanding.The main reason that leads to resident income difference is human capital difference.In the research on human capital,scholars focus on the exploration of educational human capital,but pay less attention to healthy human capital.In addition,in the past,scholars mostly used micro data such as questionnaires for empirical research,and rarely used macro data for research.In this context,this paper discusses the impact of healthy human capital on residents’income.On the basis of referring to other related literatures,this paper firstly analyzes the influence mechanism of healthy human capital on residents’ income.Secondly,based on 11 years’ data of 30 provinces(municipalities directly under the central government and autonomous regions)from 2006 to 2016,this paper established a dynamic panel model and adopted the systematic GMM method to empirically analyze the impact of residents’ health level on their income.Finally,on the basis of theoretical analysis and empirical research,the following conclusions are drawn:First,the empirical results show that the coefficient of health index(death)is significantly negative in all three models.Since mortality is a negative measure of health,the regression results show that health level has a significant positive impact on income level.Healthy physical condition can improve the work attendance rate to a certain extent and reduce the loss of working time caused by the worker’s injury.At the same time,healthy physical condition can effectively bring about the improvement of labor productivity,so that the level of income of workers.Second,there are significant regional differences in the income effect of health.According to the empirical results,the health level of residents in central China has a greater impact on the income level,while that in eastern China and western China has a smaller impact.The results are related to the level of education,health care and economic development in each region.The greater impact in the central region can be partly explained by the low urbanization rate.The reason for the smaller impact in the eastern region may be that the eastern region as a whole has a higher level of health.The western region of China has a relatively low level of economic development.The rate of return on labor per unit time of residents is lower than that of the central region and the eastern region,and the opportunity cost of health is lower than that of the central region and the eastern region.Therefore,the coefficient of explanatory variables is significantly lower than that of the central region and the eastern region.Thirdly,educational human capital and healthy human capital can promote each other.On the one hand,healthy workers invest more money and energy in education,acquire more knowledge and skills,and thus earn higher incomes.Individuals with poor health need to spend more time on medical treatment and rest,reduce the length of education,and thus obtain a lower educational capital stock.On the other hand,people with higher education level tend to have higher health literacy and are willing to invest more time and money in health to improve their health capital stock,thus forming a virtuous circle.Finally,according to the empirical results and analysis of this paper,the corresponding policy recommendations are put forward.