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The Effect of Health Insurance Reform: Evidence from China

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  • He, Huajing

    () (University of Essex)

  • Nolen, Patrick J.

    () (University of Essex)

Abstract

This paper estimates the impact of a health insurance reform on health outcomes in urban China. Using the China Health and Nutrition Survey we find that this reform increases the rate of health insurance coverage significantly among workers in Non-State Owned Enterprises. The double difference (DD) estimations show that the reform also leads to better health outcomes: workers are less likely to get sick and more likely to use preventive care. Using an instrumental variable (IV) approach to look at the causal effect of health insurance, we find those with health insurance use more preventive care but do not report significantly better health outcomes, an increase in health care utilisation, or an increase in out-of-pocket medical expenditure.

Suggested Citation

  • He, Huajing & Nolen, Patrick J., 2018. "The Effect of Health Insurance Reform: Evidence from China," IZA Discussion Papers 11892, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11892
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    More about this item

    Keywords

    health insurance reform; health outcomes; China;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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