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Measuring the effect of health on the income of people living in extreme poverty: A comparative cross‐sectional analysis

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Listed:
  • Xuejiao Liu
  • Liang Zhang
  • Ruibo He
  • Zhong Li
  • Yue Wu
  • Boyang Li

Abstract

Background Through a review of the literature, we have observed that existing studies primarily focus on defining and measuring poverty, identifying the factors that affect poverty, and proposing anti‐poverty strategies. The impact of health on income in the context of extreme poverty has not been adequately studied. In China, 30 million people live below the poverty line, and poverty caused by illness accounts for nearly 44% of the total number of recorded incidents. Health impaired by disease has become the largest obstacle to escaping extreme poverty. Objective To determine whether health has a greater effect on the incomes of individuals in the extreme poverty group compared with the nonimpoverished group. Methods The poverty threshold of China in 2010 was adopted for the definition of extreme poverty. The China Health and Nutrition Survey (CHNS) Database 2014 was selected as the data source. Ordinary least squares (OLS) test was conducted to estimate the model, and the endogeneity of the variables was analyzed by the random effects model. Waist‐to‐hip ratio (WHR) was used instead of body mass index (BMI) to perform the robustness test. Results We found that the influence of individual health conditions on income was augmented in the case of extreme poverty, which indicates that health indeed influences income more strongly for individuals in the extreme poverty group. Conclusions In addition to education, investment, and social security projects, further public policy attention should be given to the improvement of the health status of the extremely impoverished population.

Suggested Citation

  • Xuejiao Liu & Liang Zhang & Ruibo He & Zhong Li & Yue Wu & Boyang Li, 2019. "Measuring the effect of health on the income of people living in extreme poverty: A comparative cross‐sectional analysis," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(2), pages 714-726, April.
  • Handle: RePEc:bla:ijhplm:v:34:y:2019:i:2:p:714-726
    DOI: 10.1002/hpm.2730
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    Cited by:

    1. Jie Liu & Ziqiang Han & Justin Veuthey & Ben Ma, 2020. "How investment in public health has impacted the prevalence of tuberculosis in China: A study of provincial variations between 2005 and 2015," International Journal of Health Planning and Management, Wiley Blackwell, vol. 35(6), pages 1546-1558, November.
    2. Xiaodong Cui & Ching-Ter Chang, 2021. "How Income Influences Health: Decomposition Based on Absolute Income and Relative Income Effects," IJERPH, MDPI, vol. 18(20), pages 1-14, October.

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