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Richer and Healthier? Social Pensions and Unhealthy Consumption Behavior in China

Bibliographic Data

ID4360892
AuthorsXiaobing Wang (0000-0002-5491-7418), Xinyuan Lei (0000-0001-5049-6188), Yanjun Ren (0000-0002-8384-8925), Jianyu Yu (0000-0002-2425-0253)
Year2024
Volume73
Issue1
Pages381-422
Publication date2024-10-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/727535
OpenAlexW4386161167
LanguageEN
Citations received3
References cited44

Based on a life-course utility model that incorporates healthy and unhealthy, short-run and long-run consumption behavior of consumers, this study examines the unintended impact of social pensions on the smoking behaviors of the rural elderly and its underlying channels. Using China’s New Rural Pension Scheme as a policy experiment, our empirical identification rests on nonparametric fuzzy regression discontinuity to address the endogeneity problem of receiving a pension. Overall, the results indicate that receiving a pension decreases the probability of smoking and the number of cigarettes smoked. We demonstrate that the most important channel is the increase in income following the pension transfer, which makes consumers value future utility more, instead of substituting smoking with food, which is healthier. The positive health impact of social pensions is more salient for elderly individuals who are relatively poor or who have a longer life expectancy

China · Consumption (sociology) · Download · Political science · Social science · Sociology · Computer Science · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Law · Psychology · Retirement, Disability, and Employment

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Unique citing works3
Citations per year3
Citation span2025 - 2026 (2)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 3

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