Association for Public Policy Analysis & Management

This study aims to evaluate the effect of pension income on the health outcomes of the elderly in rural China. Previous literature shows mixed results on the effects of exogenous income on health outcomes, we use the of the introduction of New Rural Pension Scheme (NRPS) in China as a policy experiment to estimate the causal effect of additional pension income on the health and nutrition outcomes of elderly population. NRPS is an important part of the Chinese pension reforms and it aims to achieve universal pension coverage for all rural residents who do not hold a formal non-agricultural work and thus are ineligible for any other public pension programs. Using China Health and Nutrition Survey (CHNS) from 2009 to 2015 waves, we applied triple-difference method to estimate the causal effect of pension benefit on the health and nutrition outcomes of elderly people living in rural China. CHNS is a longitudinal study that aims to examine the effects of the health, nutrition, and family planning policies and programs implemented by national and local governments and to see how the social and economic transformation of Chinese society is affecting the health and nutritional status of its population. Preliminary results show that NRPS significantly increased self-reported health status, general physical condition and nutrition status. This study confirms with findings of previous studies that additional pension benefit has positive effect on health outcomes for the elderly. Moreover, it provides policy implications for the ongoing pension reform in China.