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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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    References listed on IDEAS

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    Cited by:

    1. Jiaqi Chen & Song Xu & Jing Gao, 2020. "The Mixed Effect of China’s New Health Care Reform on Health Insurance Coverage and the Efficiency of Health Service Utilisation: A Longitudinal Approach," IJERPH, MDPI, vol. 17(5), pages 1-13, March.
    2. Xinxin Ma, 2022. "Social Insurances and Risky Financial Market Participation: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(10), pages 2957-2975, August.
    3. Jun Yang & Silu Ma & Yongwei Song & Fei Li & Jingcheng Zhou, 2021. "Rethinking of Environmental Health Risks: A Systematic Approach of Physical—Social Health Vulnerability Assessment on Heavy-Metal Exposure through Soil and Vegetables," IJERPH, MDPI, vol. 18(24), pages 1-19, December.
    4. Zhang, Yan & Zhao, Guangchuan & Gu, Hai, 2022. "Investing in health capital: Does medical insurance matter?," Research in International Business and Finance, Elsevier, vol. 61(C).
    5. Hao, Zhuang & Zhang, Xudong & Wang, Yuze, 2024. "Assessing the accuracy of self-reported health expenditure data: Evidence from two public surveys in China," Social Science & Medicine, Elsevier, vol. 356(C).
    6. Han, Jiajun, 2024. "A tale of two markets—would housing appreciation prompt insurance participation? Evidence from China’s urban elderly," Journal of Asian Economics, Elsevier, vol. 95(C).
    7. Jingyi Fang & Yasuyuki Sawada, 2024. "On the effectiveness of insurance mechanisms for older individuals in China," The Japanese Economic Review, Springer, vol. 75(4), pages 1007-1040, December.
    8. Dai Baozhen & Minkah Andrews Yaw & Osei-Assibey Mandella Bonsu & Agyemang Fredua Sylvester Prempeh, 2019. "Assessing Factors Affecting the Patronage of Health Insurance Schemes: An Evidence of Ghana," Journal of Public Administration and Governance, Macrothink Institute, vol. 9(1), pages 73-91, March.
    9. Feiyan Yang & Li Wei, 2023. "The impact of tax-subsidized health insurance on health and out-of-pocket burden in China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(1), pages 194-246, January.

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    More about this item

    Keywords

    health outcomes; health insurance reform; 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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