Objective: This study attempts to explore the impact of urban and rural residents’ medical insurance (URRMI) on rural labor supply and its underlying mechanisms. Methods: Using the four-period panel data of the China Family Panel Studies (CFPS), this study applies Logit model and multiple linear regression model, and adopts instrumental variable methods and entropy balance matching method to address endogeneity issues. Results: URRMI significantly promotes rural labor participation and supply time, through the pathway of improving employees’ health. Further analysis shows that URRMI exerts stronger positive impacts on labor supply in the western region and the youth group (16~44 years old). Meanwhile, it can improve the quality of labor supply and break the "low-skill lock-in" dilemma. Conclusion: It is suggested to strengthen publicity and guidance, as well as provide incentives for insurance participation, and continuously expand the coverage of URRMI, enhance the allocation of primary healthcare resources and service capabilities, and consolidate the foundation of health security, optimize the design of URRMI system, and increase the protection for key groups, improve the vocational skills training system and enhance the quality of rural labor supply.
Key words
urban and rural residents’medical insurance /
rural labor supply /
health effect /
entropy balancing matching method
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