Regional Disparities in Self-Reported Health: Evidence from Chinese Elderly

Ren Mu, Texas A&M University

Amidst the demographic trend of population aging, the Chinese government has initiated reforms in health sector. Knowledge of the distribution of the health status of the elderly is essential in reforming the health care system such that it can respond effectively to the needs of an aging population while achieving the equity goals. Using data from the pilot survey of the new China Health and Retirement Longitudinal Study, this paper examines the self-reported health (SRH) of the Chinese elderly and estimates regional differences. It applies a vignette approach to control for differences in individual perceptions of good health. The results show that the elders in a poor province are 15 to 26% more likely to report bad heath than those in a rich province. It also finds that differences in observed individual demographics and morbidities cannot explain the health disparity, all of which are instead caused by unobserved differences.