Wealth shocks and self-reported health: evidence from the quasi natural experiment of housing system reform in China

Improving individuals’ self-reported health is crucial for the well-being of families and the promotion of high-quality economic and social development. Most studies have focused on the influence of household wealth on individuals’ self-reported health. In contrast to previous research, based on a quasi-natural experiment of housing system reform, which potentially induced a positive shock to household wealth, this study examines the impact of housing system reform on self-reported health of residents in China. Based on the data from China Health and Nutrition Survey between 1991 and 2011, this study employed difference-in-differences model to investigate the impact of housing system reform on individuals’ self-reported health. The findings of the study demonstrate a significant positive impact of housing system reform on the self-reported health of residents. Furthermore, to ensure the robustness of the estimated results, we conducted a series of additional tests, including re-estimation using the PSM-DID approach, exclusion of potential confounding policies, redefinition of the control group, inclusion of province–time joint fixed effects, and counterfactual analysis. All these robustness checks consistently confirm that the housing system reform exerts a significant positive impact on self-reported health. The results of heterogeneity analysis indicate that housing system reform has a more pronounced impact on the self-reported health of residents in eastern regions, women, older, as well as low-income individuals. The results of the mechanism analysis suggest that housing system reform may enhance individuals’ self-reported health by reducing the likelihood of overwork. Further analysis also confirms that housing system reform has a more pronounced impact on the self-rated health of residents with lower levels of education.