Health Income Effects On Rural Residents In China

Using the microeconometrics methods, based on the data form China Health and Nutrition Survey and Chinese Household Income Project, this paper studies the health income effects on rural residents in China in terms of three aspects: labor force participation, work hour, labor force productivity. The framework as follows:This paper first reviews the content and mechanism of action of the health income effects theory, and analyzes and evaluates the advantages and disadvantages of subjective and objective health indicators, and introduces the choice of a variety of health indicators; This paper reviews the empirical research methods and findings of domestic and foreign literatures, although the data and methods varied, yet most of the conclusions strongly supported the positive effects of health on labor force participation, work hour and labor force productivity.This paper second discusses the health "endogeneity" and the corresponding treatment and gives a review of the relationship among important health measurements in statistical perspective: height, weight, Body Mass Index, calorie and protein intake, illness, Self Reported Health, based on the review this paper presents the construction methods of objective health indicator. The objective health status-- height, BMI, calorie and protein intake and four-week prevalence rate reflects the health status of individual from different angles, completely embodies the individual's long, medium and short-term health status and the impact of unanticipated events-- diseases on individual health, so they are suitable to construct the objective health indicator. According to its importance, this paper assigns different weights of it to calculate the composite score of objective health indicator.Third, using the multi Logit model, the panel data Instrumental Variable method and Generalized Least Squares, this paper analyzes the health income effects on farmer groups. The results show that objective health indicator increases by 1 unit, the participation rate/ work hour and hourly earnings of male respectively increases by 1.72% / 0.81% and 1.08%, the participation rate/ work hour and hourly earnings of female respectively increases by 2.41% / 0.48% and 1.15%. Health status is not the major factors whether young men engaged in agriculture. At the same time, the male is the main labor force in household agricultural production, and the health status affects his labor time significantly, the effects of health on male is bigger than on female, and the older the age is, the bigger the health effect (include the female) becomes. The effect of health status on labor force productivity of male is slightly higher than female, however, there're a wider sphere of influence in female. Groups of young men as the main labor force in agricultural production, generally good physical health, and by the limitations of natural resources in rural areas, farming is the "have to" or the only option, the health effects on labor forceparticipation, work hours and hourly earnings is less affected or not significant. Groups of female engaged in family care or non-market household production and business activities, health effects on farming activities of all age groups is in a more balanced condition; Since the exist of"conflicts between territory and human"in rural areas, which limited the time that health play a role, the effects of health is more reflected in the increase of labor force productivity.Fourthly, using the multi Logit model, the panel data Instrumental Variable method and Generalized Least Squares, this paper analyzes the health income effects on off-farm employment groups. The results show that objective health indicator increases by 1 unit, hourly earnings of male increases by 0.35%, the participation rate and hourly earnings of female respectively increases by 1.88% and 1.53%. The health effects on female is bigger than male, off-farm employment earnings is more affected by occupation and type of unit; The health effects on groups of older men is more than younger. Compared with male groups, the health effects on female is more emphasis on younger age groups, because the proportion of female groups in the service industry and other professional types is higher than male groups. The health effects on off-farm employment income is most reflected in improvement of labor productivity, and there's a broader effect on male and female groups. Off-farm employment, especially in state-owned enterprises or government work units, due to institutional reasons, is mainly affected by the social capital of individuals. As a result of system constraints, the work hours of off-farm employment of individual decisions has been affected to some extent.Fifthly, using binary Logit model, OLS and the quantile regression model, this paper analyzes the health income effects of migrant workers groups. The results show that Self Reported Health increases by 1 unit, the participation rate and work hour of male respectively increases by 510.16% and 2.27%, the hourly earnings of female increases by 5.83%. The longer male works, the stronger effect the health plays. The lower the hourly earnings of female is, the greater effect the health plays. The role of health effect on male and female is different because men and women are engaged in occupations related to different physical power.Finally, using the Difference in Difference methods and panel data Generalized Least Squares, this paper analyzes the health effect and income effect of the New Rural Cooperative Medical Scheme. The results show that health status of male and female of farmer groups respectively increases by 3.54% and 3.64%, annual income respectively increases by 5.80% and 5.16%, Cost-Benefit Rates respectively are 663.20% and 460.61%, so the benefits of health investment are significant. The New Rural Cooperative Medical Scheme has no siganidicant effects on off-farm employment groups; The effect on farmer groups is significant, the health effect on female is stronger than that on male, the income effect on male is stronger than that on female.The results form this paper contribute to a better understanding of the health income effects on rural residents, and will be beneficial to the implementation of the New Rural Cooperative Medical Scheme.