IDEAS home Printed from https://ideas.repec.org/a/bpj/apjrin/v19y2025i1p27-51n1003.html
   My bibliography  Save this article

Medical Insurance Contribution and Firm-Level Total Factor Productivity

Author

Listed:
  • Huang Tao

    (Faculty of Economics, School of Finance and Trade, 12440 Liaoning University , Shenyang, China)

  • Sun Rui

    (Faculty of Economics, School of Finance and Trade, 12440 Liaoning University , Shenyang, China)

  • Zhao Zhe

    (Faculty of Economics, School of Economics, 12440 Liaoning University , Shenyang, China)

Abstract

This paper investigates the relation between medical insurance contribution and firm-level total factor productivity in China. Using a sample of Chinese A-share companies from 2007 to 2022, we find robust evidence that firms exhibit lower total factor productivity when medical insurance contribution is increasing. Specifically, we also show that this negative effect is more profound for state-owned enterprises, enterprises with lower employee compensation, and labor-intensive enterprises. Meanwhile, our findings remain valid after a series of robustness tests and controlling for endogeneity. Finally, we propose that the decreasing employees’ disposable income is plausible channel through which medical insurance contribution discourages firm-level total factor productivity in China. Overall, these results shed light on the real effects of medical insurance contribution and the determinants of firm-level total factor productivity.

Suggested Citation

  • Huang Tao & Sun Rui & Zhao Zhe, 2025. "Medical Insurance Contribution and Firm-Level Total Factor Productivity," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 19(1), pages 27-51.
    • Handle: RePEc:bpj:apjrin:v:19:y:2025:i:1:p:27-51:n:1003
    DOI: 10.1515/apjri-2024-0019
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/apjri-2024-0019
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/apjri-2024-0019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    medical insurance; total factor productivity; disposable income;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:apjrin:v:19:y:2025:i:1:p:27-51:n:1003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.