Income, Income Inequality and Health in Rural China: The Analysis Based on Region

Using the data of China Health and Nutrition Survey(CHNS)from 2000 to 2006 and by the instrumental variable regression random effect modelt,he effect of income and income inequality on the health has been analyzed and the contribution of income and income inequality to the health disparity has been measured by comparing the two-different region in rural china.The result shows that the coefficient of income by IV estimator is 9.5 times of the ordinary ran-dom effect estimator,which underestimates the effect of income on health.The average household income has the significant positive effect on the health and income inequality has the inverted-U associated with health,but positive related also because of the critical value of ginii,n rural China.In addition tot,he marginal effect of income and income inequality to health in mid-western is more than that in eastern and the contribution of income and income inequality to health disparity between eastern and mid-western is 25.7 and 20.2 percent respectively,meanwhilet,he contribu-tion of the income is 45.8 percent by considering other related income factor.Therefore,we argue that how to improve income has an important to the heath in rural chinae,specially for mid-western.
JOUR
Hongliang, Chen Zaiyu Hongliang
2010
Nankai Economic Studies
1428