The Impact on Chinese Children of Extending Social Medical Insurance Coverage: A Difference-in-Difference with Staggered Treatment Analysis

Jing Guan and Juan de Dios Tena

No 202227, Working Papers from University of Liverpool, Department of Economics

Abstract: Although the impact of introducing social medical insurance schemes in developing countries has attracted considerable research interest, less attention has been paid to the extension and consolidation of such policies. This paper estimates the effect on children’s health of the Chinese Urban and Rural Resident Basic Medical Insurance (URRBMI), which was gradually implemented across Chinese provinces. Using recent econometric methods that avoid the problem of negative weights associated with staggered treatments, we find that the URRBMI policy reduced sickness frequency while increasing insurance participation. However, results are statistically insignificant when we employ a traditional two-way fixed effect (TWFE) model. Results highlight the benefits of extending insurance policies in China and the need to evaluate them using accurate estimation techniques.

Keywords: URRBMI; staggered adoption; Difference-in-Difference. (search for similar items in EconPapers)
JEL-codes: I13 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:liv:livedp:202227

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