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The impact of long-term and short-term health shock on the labour supply and labour income of migrant workers in China: the mediating role of medical insurance

Author

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  • Xiaoou Man
  • Zengxin Xue
  • Jiatong Liu

Abstract

Using national data from China Labour-force Dynamics Survey (CLDS), we apply Heckman two-step model and instrumental variable method to analyse the impact of long-term and short-term health shock on the labour supply and labour income of migrant workers as well as the mediating effect of medical insurance. Results indicate that both long-term and short-term health shock significantly reduce the labour supply and labour income of migrant workers. In particular, the negative effect of short-term health shock on labour supply proves greater than that of long-term health shock, and the negative effect of long-term health shock on labour income proves greater than that of short-term health shock. Medical insurance mitigates the negative effect of short-term health shock on the labour supply and labour income of migrant workers, yet produces no remarkable mediating effect on migrant workers who suffer from long-term health shock.

Suggested Citation

  • Xiaoou Man & Zengxin Xue & Jiatong Liu, 2023. "The impact of long-term and short-term health shock on the labour supply and labour income of migrant workers in China: the mediating role of medical insurance," Applied Economics Letters, Taylor & Francis Journals, vol. 30(15), pages 2030-2034, September.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:15:p:2030-2034
    DOI: 10.1080/13504851.2022.2089343
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