Social Learning and Health Insurance Enrollment: Evidence from China's New Cooperative Medical Scheme

Hong Liu, Qi Sun () and Zhong Zhao
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Qi Sun: Shanghai University of Finance and Economics

No 7251, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the role of social learning in household enrollment decisions for the New Cooperative Medical Scheme in rural China by estimating a static game with incomplete information. Using a rich dataset from the China Health and Nutrition Survey, we find that the social network effects in the enrollment decision are large and significant. Furthermore, we use temporal and spatial proximity among household heads and obtain the result that the primary mechanism for the social network effects is social learning. Our findings indicate that a 10-percentage-point increase in the enrollment rate in a village increases one's take-up probability by 5 percentage points. We also find that the importance of social learning decreases significantly with the development of alternative information channels. Finally, the evidence suggests that healthier, wealthier, relatively well-educated older male household heads with Han nationality tend to be opinion leaders.

Keywords: rural China; health insurance; social learning; social effect (search for similar items in EconPapers)
JEL-codes: G22 I1 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-02
New Economics Papers: this item is included in nep-cdm, nep-hea, nep-ias, nep-net and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Journal of Economic Behavior and Organization , 2014, 97, 84–102

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Journal Article: Social learning and health insurance enrollment: Evidence from China's New Cooperative Medical Scheme (2014)
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