The Interactive Relationship Between Health Investment And The Income Of Floating Population

Health is one of the fundamental goals of human development.A higher level of health is not only personal pursuit but also the essentials for national economic development.The floating population is important component of Chinese population.Their health conditions also draw much public attention.On the one hand,floating population has always been excluded from the Public Health Service System,because their workplaces are away from their birth places.Such special situations increase the cost and reduce their willingness of health investment on a high degree.On the other hand,the migration mechanism leads to the healthy population outflow but unhealthy population inflow.Concerning the wide gap of health investment between urban and rural areas,floating population health investment is worthy of more attention.As an important part of human capital,health has a great effect on one's income.Conversely,the income of floating population also has a feedback effect on one's health.Therefore,the research intends to demonstrate in particular details the interaction between floating people health investment and their income growth.First of all,our research on the income of floating population health investment and its group differences indicates that:no statistical significance level within 10%has been found between the self-support medical expenses,as a substitute index of floating population health investment.Earlier work has considered the endogenous problems between health investment and income.Thus,we use "exercise frequency per week" as the instrumental variables of the "self-support medical expenses".The regression result manifests that "average weekly exercise frequency" has significantly negative effect on the floating population's income.Such outcome demonstrates the precisely significant correlation between the floating population health investment and their incomes.Taking the gender and age differences of floating population into account,this paper further discusses the group differences on income effect,including gender and age differences.On the one hand,exercise frequency per week of male workers has a significantly influence on their income,while no apparent relationship of this kind can be found when it come to female workers.On the other hand,for the new-generation floating population,their health investment hasn't provided significant relationship with their income,while we can observe are negative effeect of the old generation's health investment towards their income.The possible reasons are as follows.Most new generation workers are in good health,so their intent of health investment is low.As for the old generation workers,with time going by,their health condition shows physiologic decline.They have to intentionally invest on their health to maintain their working life.The possible reason is that the health conditions of male workers determine the family's income stability and amount.Therefore,due to the fairness of investment allocation,male enjoys superiority towards female in one's family.Finally,concerning the particularity of the floating population,The New Rural Cooperative Medical Scheme has crucial importance on helping rural populations enjoy medical care.We emphatically investigate the effect of The New Rural Cooperative Medical Scheme on floating population health investment willingness and their income growth.Conclusions are reached as follows.Firstly,The New Rural Cooperative Medical Scheme positively affects the floating population health investment willingness.However,a few problems still exist,such as the Scheme hasn't worked at full capacity on bringing benefits to the masses of people.In order to play its role better,we need to take the floating population particularity into consideration.According to their high mobility,a medical security system should be specially-designed for the floating population.Secondly,though the dispute over the role of The New Rural Cooperative Medical Scheme in floating population income growth still exists,there is no doubt that it helps to improve their life quality,reduce their prevalence,upgrade the happiness index as well.The possible innovative points lie in the following:Initially,we regard the floating population health investment and their income as an interaction(we examine the interaction of floating population health investment with their income.)which includes two parts—the income effect of health investment and the feedback effect of the income on one's health investment.This may effectively avoid the potential defects in the earlier health investment researches which merely analyze the one-side influence.Besides,when analyzing the feedback effect of floating population income on their health investment,we view the health investment as a special consumption including hospitalization expenses and non-hospitalization expenses which also interact with each other.We build a simultaneous equations model to examine the feedback effect of the income on one's health investment.This is a favorable attempt to eliminate random noise between different consumption in single equation model.In order to clarify the concrete role of the "new rural cooperative medical insurance"policy,the author first uses the interactive effect measurement model to analyze the policy effect of the "new rural cooperative",and the concrete effect of the implementation of the new rural cooperative.At last this paper analyzes the income effect of the healthy investment of the floating population and the feedback effect of its income from the systematic perspective.we introduce the income effect of the floating population health human capital and its feedback effect into the simultaneous equation model,and thus ensure the robustness of measurement results.