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The Cost of Disability in China

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  • Prashant Loyalka

    ()

  • Lan Liu

    ()

  • Gong Chen

    ()

  • Xiaoying Zheng

    ()

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    Abstract

    We describe the degree to which household income is negatively associated with the prevalence of different types of disability (i.e., medical impairments) in China using data from the 2006 Second National Survey of Disabled Persons. We then calculate the extra costs of disability across different types of households and show how these costs differ by the type and severity of disability in both urban and rural areas. Finally, we use nationally representative panel data on persons with disabilities from 2007 to 2009 to examine the degree to which social security is reaching persons with different types and severity of disabilities in both urban and rural areas. We conclude that although the amount and coverage of social security for households with disabilities is increasing rapidly, it is still not enough to offset the income differential between households with and without disabled persons, especially when we account for the extra costs of disability. Copyright Population Association of America 2014

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    File URL: http://hdl.handle.net/10.1007/s13524-013-0272-7
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    Bibliographic Info

    Article provided by Springer in its journal Demography.

    Volume (Year): 51 (2014)
    Issue (Month): 1 (February)
    Pages: 97-118

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    Handle: RePEc:spr:demogr:v:51:y:2014:i:1:p:97-118

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    Web page: http://www.springer.com/economics/journal/13524

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    Related research

    Keywords: Disability; Poverty; Extra costs; China; Social security;

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    1. Anne Case & Christina Paxson, 2010. "Causes And Consequences Of Early Life Health," Working Papers 1214, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    2. John Cullinan & Gannon, Brenda & Seán Lyons, 2008. "Estimating the Economic Cost of Disability in Ireland," Papers, Economic and Social Research Institute (ESRI) WP230, Economic and Social Research Institute (ESRI).
    3. Asghar Zaidi & Tania Burchardt, 2005. "Comparing Incomes When Needs Differ: Equivalization For The Extra Costs Of Disability In The U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 89-114, 03.
    4. Sophie Mitra, 2005. "Disability and Social Safety Nets in Developing Countries," World Bank Other Operational Studies 11783, The World Bank.
    5. Haveman, Robert & Wolfe, Barbara, 2000. "The economics of disability and disability policy," Handbook of Health Economics, Elsevier, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 18, pages 995-1051 Elsevier.
    6. Steven Stern, 1989. "Measuring the Effect of Disability on Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 361-395.
    7. Chen, Shaohua & Ravallion, Martin, 2008. "China is poorer than we thought, but no less successful in the fight against poverty," Policy Research Working Paper Series 4621, The World Bank.
    8. Johannes G. Hoogeveen, 2005. "Measuring Welfare for Small but Vulnerable Groups: Poverty and Disability in Uganda," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 14(4), pages 603-631, December.
    9. Stanislav Kolenikov & Gustavo Angeles, 2009. "Socioeconomic Status Measurement With Discrete Proxy Variables: Is Principal Component Analysis A Reliable Answer?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 128-165, 03.
    10. David McKenzie, 2005. "Measuring inequality with asset indicators," Journal of Population Economics, Springer, vol. 18(2), pages 229-260, 06.
    11. John Cullinan & Brenda Gannon & Eamon O’Shea, 2013. "The welfare implications of disability for older people in Ireland," The European Journal of Health Economics, Springer, Springer, vol. 14(2), pages 171-183, April.
    12. Braithwaite , Jeanine & Mont , Daniel, 2008. "Disability and poverty : a survey of World Bank poverty assessments and implications," Social Protection Discussion Papers 42754, The World Bank.
    13. J. Cullinan & B. Gannon & S. Lyons, 2011. "Estimating the extra cost of living for people with disabilities," Health Economics, John Wiley & Sons, Ltd., vol. 20(5), pages 582-599, May.
    14. Daniel Mont & Nguyen Viet Cuong, 2011. "Disability and Poverty in Vietnam," World Bank Economic Review, World Bank Group, World Bank Group, vol. 25(2), pages 323-359.
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