Paper Infomation
Does Retirement Affect Health Expenditure of China’s Urban Male? — Empirical Evidence Based on Regression Discontinuity Design
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Author: Siyu Zhou
Abstract: China is facing an increasingly serious aging problem. With the acceleration of urbanization and sustained economic growth, the health status of retirees is worrying, and the demand for medical services is also rapidly increasing. The government is working hard to address the challenges brought by the rapid growth of healthcare expenditures, especially against the backdrop of slowing economic growth. The government is facing an important choice: in terms of the enforcement of the statutory retirement age, should citizens work for an additional year after reaching the statutory retirement age, which brings higher marginal value, or should the marginal cost of retiring for one year be lower? Evaluating the economic consequences of retirement policies is crucial for the entire society and government. This article explores the impact of retirement on urban men in China from the perspective of medical insurance expenditures, with a particular focus on three types of expenditures: self treatment, outpatient, and hospitalization expenses, and analyzes four influencing mechanisms: consumption ability, health status, time, and lifestyle. Using CHARLS data (2014-2015), the fuzzy breakpoint regression method was employed to address potential endogeneity issues. Research has found that retirement has a bidirectional impact on healthcare expenditure: among the 55-65 age group, retirement increases self treatment and medication costs, but reduces total outpatient and inpatient expenses; The trend of out of pocket expenses is similar, but the magnitude is greater.
Keywords: Retirement; Medical Expenditure; Regression Discontinuity Design
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