Research On The Impact Of Health Risk And Labor Participation On The Financial Vulnerability Of Rural Households

Poverty eradication is the prerequisite for achieving common prosperity.With the overall victory of China’s poverty alleviation campaign,China’s development has entered a new stage.However,poverty has a long-term and repetitive nature,and the "marginalized population" with unstable income and floating at the poverty line are highly susceptible to returning to poverty under the impact of uncertainty.Therefore,establishing a scientific monitoring mechanism in advance to prevent the poverty alleviation population from returning to poverty is an urgent problem to be solved.The financial fragility of households can intuitively depict their financial situation and the risks they face leading to poverty and returning to poverty.It is an important indicator for monitoring the prevention of returning to poverty.Compared to urban areas,rural households are prone to exhibiting vulnerability due to the lack of necessary risk response and management measures when facing uncertain impacts.At the same time,as an important family background risk,the impact of health risk on households is mainly manifested in significantly increasing household expenses and reducing household income,deteriorating the financial situation of households,and leading to poverty return.But with the impact of external risks,families will take measures to avoid financial difficulties as much as possible.Labor participation,as the main way for rural families to obtain income,plays a crucial role in family risk response.In view of this,this article takes health risks and labor participation as the starting point,focusing on exploring the impact effect and mechanism of health risks on the financial vulnerability of rural households.Based on the above analysis,this paper uses the panel data composed by CHFS in 2015,2017 and 2019 to introduce health risk,labor participation and rural household financial vulnerability into the same research framework.On the basis of analyzing the overall role of health risk and labor participation on rural household financial vulnerability,this paper subdivides the types of labor participation,and further explores the impact of agricultural labor and non-agricultural employment on rural household financial vulnerability,Simultaneously studying the mechanism and role of labor participation and non-agricultural employment in the impact of health risks on the financial vulnerability of rural households,the main research content is as follows:Firstly,by reviewing relevant basic theories and literature,a theoretical analysis is conducted on the relationship between health risk,labor participation,and rural household financial vulnerability.Firstly,the basic theories related to health risk,labor participation,and household financial vulnerability are reviewed,and the research on the impact of health risk on household labor participation and household financial vulnerability is summarized and summarized;Secondly,based on the theories of background risk and labor supply,the impact of health risk and labor participation on the financial vulnerability of rural households was analyzed.At the same time,the relationship between health risk and the financial vulnerability of rural households was explored to explore the mechanism and role of labor participation and non-agricultural employment in the impact of health risk on the financial vulnerability of rural households,thus determining the empirical research structure of the article.Secondly,this paper analyzes the overall role of health risks and labor participation in the financial vulnerability of rural households in China,and uses the panel ordered probit model and CMP estimation method to conduct empirical tests.The results show that health risks can significantly increase the financial vulnerability of rural households,while labor participation can significantly reduce the financial vulnerability of rural households.Further subdivision of the types of labor participation shows that,Agricultural labor can significantly increase the financial vulnerability of rural households,while non-agricultural employment can significantly reduce the financial vulnerability of households.Thirdly,analyze the mechanism of family labor participation and non-agricultural employment in the impact of health risks on the financial vulnerability of rural households.Empirical tests were conducted using a mixed cross-section model and a bidirectional fixed effects model,and the results showed that health risks can have an impact on household financial vulnerability by reducing the labor participation rate and non-farm employment rate of rural households.After grouping and regressing the samples,it was found that health risks have a greater impact on labor participation rates and non-farm employment rates in the central and western regions,middle-aged and elderly,and low-income rural households.This article provides empirical research evidence to understand the relationship between health risks,labor participation,and rural household financial vulnerability.It helps to better understand household financial vulnerability from the perspective of background risks and risk response,thus providing new reference for reducing household financial vulnerability and preventing marginalized populations from returning to poverty.The policy recommendations of this article are as follows:(1)The government should improve policies related to national health and enhance the overall health level of rural residents;(2)We need to vigorously develop commercial health insurance and increase the ability of rural households to cope with risks;(3)Expand the labor participation methods of migrant workers and enhance the non-agricultural employment level of rural labor;(4)Focus on improving the health level and employment security of middle-aged and elderly rural families in the central and western regions.