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The Impact on Chinese Children of Extending Social Medical Insurance Coverage: A Difference-in-Difference with Staggered Treatment Analysis

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  • Jing Guan
  • J.D. Tena

Abstract

Although the impact of introducing social medical insurance schemes in developing countries has attracted considerable research interest, less attention has been paid to the extension and consolidation of such policies. This paper estimates the effect on children’s health of the Chinese Urban and Rural Resident Basic Medical Insurance (URRBMI), which was gradually implemented across Chinese provinces. Using recent econometric methods that avoid the problem of negative weights associated with staggered treatments, we find that the URRBMI policy reduced sickness frequency while increasing insurance participation. However, results are statistically insignificant when we employ a traditional two-way fixed effect (TWFE) model. Results highlight the benefits of extending insurance policies in China and the need to evaluate them using accurate estimation techniques.

Suggested Citation

  • Jing Guan & J.D. Tena, 2022. "The Impact on Chinese Children of Extending Social Medical Insurance Coverage: A Difference-in-Difference with Staggered Treatment Analysis," Working Papers 202227, University of Liverpool, Department of Economics.
    • Handle: RePEc:liv:livedp:202227
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    References listed on IDEAS

    as
    1. David Card & Lara D. Shore-Sheppard, 2004. "Using Discontinuous Eligibility Rules to Identify the Effects of the Federal Medicaid Expansions on Low-Income Children," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 752-766, August.
    2. Sarah Miller, 2012. "The Impact of the Massachusetts Health Care Reform on Health Care Use among Children," American Economic Review, American Economic Association, vol. 102(3), pages 502-507, May.
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    More about this item

    Keywords

    URRBMI; staggered adoption; Difference-in-Difference.;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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