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Public Health Insurance, Non-Farm Labor Supply, and Farmers’ Income: Evidence from New Rural Cooperative Medical Scheme

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  • Jin Liu

    (Research Institute for Agriculture, Farmer and Rural Society in China, Shanghai University of Finance and Economics, NO.777, Guoding Road, Yangpu District, Shanghai 200433, China
    Institute of Finance and Economics, Shanghai University of Finance and Economics, NO.777, Guoding Road, Yangpu District, Shanghai 200433, China)

  • Yufeng Lu

    (Institute of Finance and Economics, Shanghai University of Finance and Economics, NO.777, Guoding Road, Yangpu District, Shanghai 200433, China)

  • Qing Xu

    (Research Institute for Agriculture, Farmer and Rural Society in China, Shanghai University of Finance and Economics, NO.777, Guoding Road, Yangpu District, Shanghai 200433, China
    Institute of Finance and Economics, Shanghai University of Finance and Economics, NO.777, Guoding Road, Yangpu District, Shanghai 200433, China)

  • Qing Yang

    (Institute of Finance and Economics, Shanghai University of Finance and Economics, NO.777, Guoding Road, Yangpu District, Shanghai 200433, China)

Abstract

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.

Suggested Citation

  • Jin Liu & Yufeng Lu & Qing Xu & Qing Yang, 2019. "Public Health Insurance, Non-Farm Labor Supply, and Farmers’ Income: Evidence from New Rural Cooperative Medical Scheme," IJERPH, MDPI, vol. 16(23), pages 1-15, December.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:23:p:4865-:d:293551
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    Cited by:

    1. Lingchen Liu & Renji Sun & Yan Gu & Kung Cheng Ho, 2020. "The Effect of China’s Health Insurance on the Labor Supply of Middle-aged and Elderly Farmers," IJERPH, MDPI, vol. 17(18), pages 1-23, September.
    2. Xinming Liu & Zhe Song & Jie Xu & Weilin Feng & Wei Liu, 2024. "Impact of Linking Livelihood Resilience of Smallholder Households and the Risk Management Strategies: The Case of China from Socioeconomic Perspectives," Agriculture, MDPI, vol. 14(9), pages 1-20, September.
    3. Qi Liu & Jin Liu & Shuntian Sui, 2020. "Public Medical Insurance and Healthcare Utilization and Expenditures of Older with Chronic Diseases in Rural China: Evidence from NRCMS," IJERPH, MDPI, vol. 17(20), pages 1-15, October.
    4. Tongwei Xie & Changjiang Xiong & Qing Xu & Tianshu Zhou, 2022. "The Impact of Social Pension Scheme on Farm Production in China: Evidence from the China Health and Retirement Longitudinal Survey," IJERPH, MDPI, vol. 19(4), pages 1-13, February.
    5. Qing Yang & Qing Xu & Yufeng Lu & Jin Liu, 2020. "The Impact of Public Health Insurance on Household Credit Availability in Rural China: Evidence from NRCMS," IJERPH, MDPI, vol. 17(18), pages 1-17, September.

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