Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/111546
Authors: 
Liu, Kai
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9094
Abstract: 
This paper provides empirical evidence on the role of public health insurance in mitigating adverse outcomes associated with health shocks. Exploiting the rollout of a universal health insurance program in rural China, I find that total household income and consumption are fully insured against health shocks even without access to health insurance. Household labor supply is an important insurance mechanism against health shocks. Access to health insurance helps households to maintain investment in children's human capital during negative health shocks, which suggests that one benefit of health insurance could arise from reducing the use of costly smoothing mechanisms.
Subjects: 
China
health insurance
health shock
JEL: 
D1
O1
I1
Document Type: 
Working Paper

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