Health Risk, Income Effect, and the Stability of Farmers’ Poverty Alleviation in Deep Poverty Areas: A Case Study of S-County in Qinba Mountain Area

Abstract

Health status and income level are both important factors in reducing poverty and accomplishing sustainable development in deep poverty areas of China. Therefore, the purpose of this study is to provide policy support for the sustainable poverty alleviation of farmers by analyzing the net effect of health risk on Farmers’ income poverty and its impact mechanism. Based on the data of more than 199,000 farmers, this study uses the Difference in Difference (DID) model to empirically analyze the effect of health-risk on farmers’ income poverty. The empirical findings obtained from DID model show that health risk has a significant and positive impact on income poverty, where the impact of disability is higher. Furthermore, the mechanism shows that the impact of health risks on income poverty is mainly influenced by farmers’ off-farm working choices and time. The heterogeneity analysis shows that the health risk significantly impacts non-vulnerable farmers’ poverty. With outdated healthcare facilities in poverty-stricken areas, people are more likely to fall into income poverty. Therefore, the study concludes that establishing an effective long-term mechanism of health risk prevention is essential to improving the endogenous development power of poor farmers and decreasing income poverty.

Medical insurance, vulnerability to poverty, and wealth inequality

“…Remarkably, China achieved the United Nations' 2030 Agenda for Sustainable Development's poverty reduction goal a decade early, historically eradicating absolute poverty and creating an unprecedented feat in human poverty reduction history (Table 1). 2 The positive correlation between health risks and household poverty has been discussed in several studies (1)(2)(3). Using household survey data from China, Song et al (3) and Ma et al (4) found that health risks are a direct factor leading to poverty vulnerability in households.…”

“…The positive correlation between health risks and household poverty has been discussed in several studies ( 1–3 ). Using household survey data from China, Song et al ( 3 ) and Ma et al ( 4 ) found that health risks are a direct factor leading to poverty vulnerability in households. Liao et al ( 1 ) discovered that under the impact of health risks, increased household medical expenses lead to reductions in total household capital, total labor, and per capita capital, ultimately plunging households into poverty.…”

Health, Education, and Economic Well-Being in China: How Do Human Capital and Social Interaction Influence Economic Returns

“…Higher education has become the engine of social, economic, and human capital development [ 8 ]. The contribution of human capital to economic development has become a significant factor in promoting actual sustainable development [ 9 ]. By the end of 2021, China’s population of over six-year-olds was 14,411 million, of which 99.96% had reached the primary education level (See., Figure 1 ).…”