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The New Cooperative Medical Scheme and Self-Employment in Rural China

Author

Listed:
  • Baozhong Su

    (College of Economics and Management, China Agricultural University, Beijing 100083, China)

  • Gatwaza Hategekimana Thierry

    (College of Economics and Management, China Agricultural University, Beijing 100083, China)

  • Qihui Chen

    (Center for Food and Health Economic Research, College of Economics and Management, China Agricultural University, Beijing 100083, China)

  • Qiran Zhao

    (Center for Food and Health Economic Research, College of Economics and Management, China Agricultural University, Beijing 100083, China)

Abstract

Using panel data from the China Health and Nutrition Survey, this study estimates the effect of the New Cooperative Medical Scheme (NCMS) on self-employment in rural China, based on a difference-in-differences method (combined with propensity score matching). Specifically, we compare employment status of the participants and non-participants groups before and after the NCMS was implemented (within the common-support region). We found that the NCMS increased a rural resident’s likelihood of shifting from working for others to self-employed by 38 percentage points and that of shifting from temporarily employed to self-employed by 23 percentage points. These results suggest that apart from reducing uncertainty in future spending for the insured due to catastrophic illness, universal health insurance could also have a positive effect on the labor market, namely, that of increasing rates of self-employment.

Suggested Citation

  • Baozhong Su & Gatwaza Hategekimana Thierry & Qihui Chen & Qiran Zhao, 2017. "The New Cooperative Medical Scheme and Self-Employment in Rural China," Sustainability, MDPI, vol. 9(2), pages 1-10, February.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:2:p:304-:d:91112
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    References listed on IDEAS

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    4. Lu Han & Haijun Bao & Yi Peng, 2017. "Which Factors Affect Landless Peasants’ Intention for Entrepreneurship? A Case Study in the South of the Yangtze River Delta, China," Sustainability, MDPI, vol. 9(7), pages 1-18, July.

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