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How Do You Feel? The Effect of the New Cooperative Medical Scheme in China

Author

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  • Carine Milcent

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Binzhen Wu

    (School of Economics and Management - THU - Tsinghua University [Beijing])

Abstract

During the 2003-2006 period, subjective health status in Chinese rural areas improved. We used a unique household longitudinal survey to analyze how the introduction of a public insurance system has contributed to the change. This program is based on a doubly voluntary process: counties decide to launch, then households decide to subscribe. We disentangle two channels of influence of the insurance: the insurance effect of the coverage and a general equilibrium effect on all residents in the insurance-adopting counties. The empirical findings include, first, a positive extensive margin: individuals feel better about their health status when covered by the NCMS. However, there is no intensive margin: an individual's self-assessed health status does not improve with the number of years enrolled in the program. Second, we find a positive general equilibrium effect of introducing the NCMS program on non-participants in NCMS counties. This effect accumulates over time.

Suggested Citation

  • Carine Milcent & Binzhen Wu, 2013. "How Do You Feel? The Effect of the New Cooperative Medical Scheme in China," PSE Working Papers halshs-00826822, HAL.
    • Handle: RePEc:hal:psewpa:halshs-00826822
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00826822
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    References listed on IDEAS

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    Keywords

    Subjective health; Rural China; Health insurance; New Cooperative Medical Scheme;
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