Abstract
This paper explores the role of basic medical insurance in protecting family investment in child education. First, this paper establishes a two-phase overlapping generation model to theoretically analyse the impact of basic medical insurance on investment in child education under the influence of the impact of parental health. The results show that health shock reduces parental investment in child education, and medical insurance significantly alleviates the negative impact of parental health shock on investment in child education. Furthermore, this paper establishes a two-way fixed effect regression model based on the data of China Family Panel Studies (CFPS) in 2014 and 2016 to empirically test the above results. The results showed that parental health shocks negatively affect investment in child education, and paternal health shock has a more significant impact than maternal health shock. However, medical insurance significantly reduces this negative impact, provides security in investment in child education, and promotes the improvement of human capital.
Highlights
Introduction and Literature ReviewHealth 2021, 18, 5242. https://Human capital is an important driving force of economic development
This study shows that parental health shock negatively affects family investment in child education, and basic medical insurance significantly decreases this negative impact
To observe the impact of health shock on family per capita income and family education investment, we divided all samples into two groups according to whether the family participated in basic medical insurance: the families with both parents participating in basic medical insurance accounted for 87.43%
Summary
Human capital is an important driving force of economic development. Education investment improves the level of human capital and promotes the development of productivity. Family child education expenditure may be decreased by parental health shock, and basic medical insurance alleviates the economic impact of health shock. On the basis of family survey data from Rwanda, Reference [14] has found that parental health insurance significantly decreases the negative impact of health shock on the child school enrollment rate. We first establish a two-stage overlapping generation (OLG) model to study the optimal educational investment decisions of insured families and uninsured families when health shock occurs or does not occur, and we analyze the impact of basic medical insurance on child educational expenditure under health shock. This study shows that parental health shock negatively affects family investment in child education, and basic medical insurance significantly decreases this negative impact
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