Influences of Public Medical Insurance System on Labor Health Status and Supply
Background: The emergence of COVID-19 in 2020 has brought dramatic impacts to the global economy. The resulting health crisis and widespread fear have triggered labor shortage problems such as high job vacancy rate and low labor participation rate. Thus, how to increase the labor supply has become a hotspot among scholars. We aimed to analyze the influences of public medical insurance system on labor health status and supply.
Method: Using the China Health and Nutrition Survey five-phase panel data, the new rural cooperative medical system was taken as an example to empirically analyze the influences of public medical insurance system on the individual health status and labor supply via the panel Tobit model and panel binary Logit model. The analysis revealed the mediating effect of health status.
Results: First, Public medical insurance system could significantly improve individual health status. Second, public medical insurance system will lengthen the labor supply time and elevate the labor supply rate by improving individual health status. Third, the influences of public medical insurance system on labor health status and supply vary with gender and age.
Conclusion: Public medical insurance system will generate positive influences on labor health status and labor supply. Hence, perfecting the public medical insurance system is able to mitigate the negative impacts of population aging and pandemic on the labor supply.
2. Nagurney A (2021). Optimization of supply chain networks with inclusion of labor: applications to covid-19 pandemic dis-ruptions. Int J Prod Econ, 235(4), 108080.
3. Dai R, Feng H, Hu J, et al (2021). The im-pact of covid-19 on small and medium-sized enterprises (smes): evidence from two-wave phone surveys in china. China Econ Rev, 67(3), 101607.
4. Cai F, Zhang DD, Liu YX (2021). The im-pact of COVID-19 on Chinese labor market. Econ Res,56(2): 4-21.
5. Strumpf E(2011). Medicaid's effect on single women's labor supply: evidence from the introduction of medicaid. J Health Econ, 30(3): 531-48.
6. Dizioli A, Pinheiro R (2016). Health insur-ance as a productive factor - sciencedi-rect. Labour Econ, 40:1-24.
7. Lee HJ, Tomohara A (2008). Public health insurance expansions and labour supply of married women: the state children's health insurance programme. Appl Econ, 40(7), 863-74.
8. Guy GP, Ad Ams EK, Atherly A (2012). Public and private health insurance pre-miums: how do they affect the health in-surance status of low-income childless adults?. Inquiry, 49(1), 52-64.
9. Boyle MA, Lahey JN (2010). Health insur-ance and the labor supply decisions of older workers: evidence from a U.S. de-partment of veterans affairs expansion. J Public Econ, 94(7-8), 467-78.
10. Lei X, Lin W (2009). The New Cooperative Medical Scheme in rural China: does more coverage mean more service and better health?. Health Econ, 18(S2):S25-S46.
11. Zhou Y, Wushouer H, Vuillermin D, et al. (2021). Does the universal medical insur-ance system reduce catastrophic health expenditure among middle-aged and el-derly households in China? A longitudi-nal analysis. Eur J Health Econ,22(3):463-71.
12. Wang D (2014). Health Performance and Mechanism of New Rural Cooperative Medical System-Based on CLHLS Data. Soc Secur Stud,14(5):59-67.
13. Chou YJ, Staiger D (2001). Health insurance and female labor supply in Taiwan, J Health Econ, 20(2): 187-211.
14. Cai L, Cong C (2010). Effects of health and chronic diseases on labor force participa-tion of older working‐age Australians, Aust Econ Pap,48:167-82.
15. Shen Z, Parker M, Brown D, et al (2017). Effects of public health insurance on la-bor supply in rural China. China Agr Econ Rev, 9(4): 623-42.
16. Chen H, Zhang ZY, Mao L (2016). Empiri-cal Study on the impact of new rural co-operative medical system on labor supply behavior of rural elderly. China Soft Sci,10:135-46.
17. Liao PA, Taylor JE (2010). Health Care Re-form and Farm Women’s Off-Farm La-bor Force Participation: Evidence from Taiwan. J Agr Resour Econ,35(2):281-98.
18. Ahearn MC, Williamson JM, Black N (2015). Implications of Health Care Reform for Farm Businesses and Families. Appl Econ Perspect Pol, 37(2):260-86.
19. Cockerham WC, Hamby BW, Oates GR (2017). The Social Determinants of Chronic Disease. Am J Prev Med,52(1): S5-S12.
|Issue||Vol 50 No 8 (2021)|
|Public medical insurance Health effect Labor supply Mediating effect|
|Rights and permissions|
|This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.|