[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/jhecon/v67y2019ics0167629618309664.html
   My bibliography  Save this article

The shattered “Iron Rice Bowl”: Intergenerational effects of Chinese State-Owned Enterprise reform

Author

Listed:
  • Kong, Nancy
  • Osberg, Lars
  • Zhou, Weina
Abstract
Reform of the Chinese State-Owned Enterprise (SOE) sector in the late 1990s triggered massive layoffs (34 million employees) and marked the end of the “Iron Rice Bowl” guarantee of employment security for the remaining 67 million workers. An expanding international literature has documented the adverse health impacts of economic insecurity on adults, but has typically neglected children. This paper uses the natural experiment of SOE reform to explore the causal relationship between increased parental economic insecurity and children's BMI Z-score. Using province-year-level layoff rates and income loss from the layoffs, we estimate a generalised difference-in-differences model with child fixed effects and year fixed effects. For a medium-build 10-year-old boy, a median treatment effect implies a gain of 1.8 kg and a 2.2-percentage-point increase in the overweight rate due to the reform. Anxiety about potential losses causes weight gain for boys whose SOE parents kept their jobs. Unconditional quantile regressions suggest that boys who are heavier are more likely to gain weight. Girls are not significantly affected. Intergenerational effects therefore increase the estimated public health costs of greater economic insecurity

Suggested Citation

  • Kong, Nancy & Osberg, Lars & Zhou, Weina, 2019. "The shattered “Iron Rice Bowl”: Intergenerational effects of Chinese State-Owned Enterprise reform," Journal of Health Economics, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:jhecon:v:67:y:2019:i:c:s0167629618309664
    DOI: 10.1016/j.jhealeco.2019.06.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167629618309664
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhealeco.2019.06.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Conchita D'Ambrosio & Nicholas Rohde, 2014. "The Distribution of Economic Insecurity: Italy and the U.S. over the Great Recession," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 33-52, May.
    2. Jacob S. Hacker & Gregory A. Huber & Austin Nichols & Philipp Rehm & Mark Schlesinger & Rob Valletta & Stuart Craig, 2014. "The Economic Security Index: A New Measure for Research and Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 5-32, May.
    3. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    4. Zhou, Weina, 2014. "Brothers, household financial markets and savings rate in China," Journal of Development Economics, Elsevier, vol. 111(C), pages 34-47.
    5. Andrew Sharpe & Lars Osberg, 2009. "New Estimates of the Index of Economic Well-being for Canada and the Provinces, 1981 - 2008," CSLS Research Reports 2009-10, Centre for the Study of Living Standards.
    6. repec:bla:revinw:v:60:y:2014:i::p:s5-s32 is not listed on IDEAS
    7. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
    8. Offer, Avner & Pechey, Rachel & Ulijaszek, Stanley, 2010. "Obesity under affluence varies by welfare regimes: The effect of fast food, insecurity, and inequality," Economics & Human Biology, Elsevier, vol. 8(3), pages 297-308, December.
    9. Smith Trenton G. & Stoddard Christiana & Barnes Michael G, 2009. "Why the Poor Get Fat: Weight Gain and Economic Insecurity," Forum for Health Economics & Policy, De Gruyter, vol. 12(2), pages 1-31, June.
    10. Nicholas Rohde & KK Tang & Lars Osberg, 2017. "The self-reinforcing dynamics of economic insecurity and obesity," Applied Economics, Taylor & Francis Journals, vol. 49(17), pages 1668-1678, April.
    11. Philip Oreopoulos & Marianne E. Page, 2006. "The Intergenerational Effects of Compulsory Schooling," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 729-760, October.
    12. Barry Watson & Lars Osberg & Shelley Phipps, 2016. "Economic Insecurity and the Weight Gain of Canadian Adults: A Natural Experiment Approach," Canadian Public Policy, University of Toronto Press, vol. 42(2), pages 115-131, June.
    13. Hongbin Cai & Hongbin Li & Albert Park & Li-An Zhou, 2013. "Family Ties and Organizational Design: Evidence from Chinese Private Firms," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 850-867, July.
    14. Trenton Smith, 2009. "Reconciling psychology with economics: Obesity, behavioral biology, and rational overeating," Journal of Bioeconomics, Springer, vol. 11(3), pages 249-282, December.
    15. Barry Watson, 2018. "Does Economic Insecurity Cause Weight Gain Among Canadian Labor Force Participants?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 406-427, June.
    16. Shing-Yi Wang, 2011. "State Misallocation and Housing Prices: Theory and Evidence from China," American Economic Review, American Economic Association, vol. 101(5), pages 2081-2107, August.
    17. Schiele, Valentin & Schmitz, Hendrik, 2016. "Quantile treatment effects of job loss on health," Journal of Health Economics, Elsevier, vol. 49(C), pages 59-69.
    18. Offer, Avner & Pechey, Rachel & Ulijaszek, Stanley, 2010. "Obesity under affluence varies by welfare regimes: The effect of fast food, insecurity, and inequality," Economics & Human Biology, Elsevier, vol. 8(3), pages 297-308, December.
    19. Carlson, Kyle, 2015. "Fear itself: The effects of distressing economic news on birth outcomes," Journal of Health Economics, Elsevier, vol. 41(C), pages 117-132.
    20. Andrew Sharpe & Lars Osberg, 2009. "New Estimates of the Index of Economic Well-being for Selected OECD Countries, 1981 - 2007," CSLS Research Reports 2009-11, Centre for the Study of Living Standards.
    21. Lindo, Jason M., 2011. "Parental job loss and infant health," Journal of Health Economics, Elsevier, vol. 30(5), pages 869-879.
    22. Mark Aguiar & Erik Hurst & Loukas Karabarbounis, 2013. "Time Use during the Great Recession," American Economic Review, American Economic Association, vol. 103(5), pages 1664-1696, August.
    23. Nathaniel G. Hilger, 2016. "Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 247-283, July.
    24. repec:bla:revinw:v:60:y:2014:i::p:s33-s52 is not listed on IDEAS
    25. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    26. Rohde, Nicholas & Tang, K.K. & Osberg, Lars & Rao, Prasada, 2016. "The effect of economic insecurity on mental health: Recent evidence from Australian panel data," Social Science & Medicine, Elsevier, vol. 151(C), pages 250-258.
    27. Chen, Yuyu & Zhou, Li-An, 2007. "The long-term health and economic consequences of the 1959-1961 famine in China," Journal of Health Economics, Elsevier, vol. 26(4), pages 659-681, July.
    28. Shing-Yi Wang, 2012. "Credit Constraints, Job Mobility, and Entrepreneurship: Evidence from a Property Reform in China," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 532-551, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Qing & Zhang, Shiying, 2022. "Gender inequality in nutrition intake: Evidence from a large assistance program," Economics & Human Biology, Elsevier, vol. 45(C).
    2. Feng, Jin & Wang, Zitai & Xie, Qiang, 2023. "Does trade liberalization improve child health? Evidence from China," China Economic Review, Elsevier, vol. 82(C).
    3. Nancy Kong & Weina Zhou, 2021. "The curse of modernization? Western fast food and Chinese children's weight," Health Economics, John Wiley & Sons, Ltd., vol. 30(10), pages 2345-2366, September.
    4. Rohde, Nicholas & Tang, Kam Ki & D’Ambrosio, Conchita & Osberg, Lars & Rao, Prasada, 2020. "Welfare-based income insecurity in the us and germany: evidence from harmonized panel data," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 226-243.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nancy Kong & Lars Osberg & Weina Zhou, 2018. "The Shattered “Iron Rice Bowl”— Intergenerational Effects of Economic Insecurity During Chinese State-Owned Enterprise Reform," Discussion Papers Series 595, School of Economics, University of Queensland, Australia.
    2. Staudigel, Matthias, 2016. "A soft pillow for hard times? Economic insecurity, food intake and body weight in Russia," Journal of Health Economics, Elsevier, vol. 50(C), pages 198-212.
    3. Staudigel, Matthias, 2015. "A soft pillow for hard times: Effects of economic insecurity on body weight in transitional Russia," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205189, Agricultural and Applied Economics Association.
    4. Watson, Barry & Daley, Angela & Rohde, Nicholas & Osberg, Lars, 2020. "Blown off-course? Weight gain among the economically insecure during the great recession," Journal of Economic Psychology, Elsevier, vol. 80(C).
    5. Cantó, Olga & García-Pérez, Carmelo & Romaguera-de-la-Cruz, Marina, 2020. "The dimension, nature and distribution of economic insecurity in European countries: A multidimensional approach," Economic Systems, Elsevier, vol. 44(3).
    6. Nicholas Rohde & KK Tang & Lars Osberg, 2017. "The self-reinforcing dynamics of economic insecurity and obesity," Applied Economics, Taylor & Francis Journals, vol. 49(17), pages 1668-1678, April.
    7. Trenton G. Smith & Steven Stillman & Stuart Craig, 2024. "“Rational overeating” in a feast‐or‐famine world: Economic insecurity and the obesity epidemic," Southern Economic Journal, John Wiley & Sons, vol. 90(3), pages 634-655, January.
    8. Kong, Nancy & Phipps, Shelley & Watson, Barry, 2021. "Parental economic insecurity and child health," Economics & Human Biology, Elsevier, vol. 43(C).
    9. Nicholas Rohde & Kam Ki Tang & D.S. Prasada Rao, 2014. "Distributional Characteristics of Income Insecurity in the U.S., Germany, and Britain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 159-176, May.
    10. Dmitry Petrov & Marina Romaguera-de-la-Cruz, 2023. "Measuring economic insecurity with a joint income-wealth approach," Working Papers 637, ECINEQ, Society for the Study of Economic Inequality.
    11. Smith, Trenton G. & Stillman, Steven & Craig, Stuart, 2013. "The U.S. Obesity Epidemic:New Evidence from the Economic Security Index," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151419, Agricultural and Applied Economics Association.
    12. Currie, Phillippa & Smith, Trenton G. & Stillman, Steven, 2014. "Is Job Insecurity Making Australians Fat? Evidence from Panel Data on Perceived Risk of Job Loss," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170720, Agricultural and Applied Economics Association.
    13. Watson, Barry & Osberg, Lars, 2019. "Can positive income anticipations reverse the mental health impacts of negative income anxieties?," Economics & Human Biology, Elsevier, vol. 35(C), pages 107-122.
    14. Dimitrios V. Diamantis & Kalliopi Karatzi & Paris Kantaras & Stavros Liatis & Violeta Iotova & Yulia Bazdraska & Tsvetalina Tankova & Greet Cardon & Katja Wikström & Imre Rurik & Emese Antal & Alelí M, 2022. "Prevalence and Socioeconomic Correlates of Adult Obesity in Europe: The Feel4Diabetes Study," IJERPH, MDPI, vol. 19(19), pages 1-15, October.
    15. David Haig, 2023. "Fat as insurance, leanness as bodily display: did Ronald Reagan make us fat?," Journal of Bioeconomics, Springer, vol. 25(3), pages 225-238, December.
    16. Darshan Zala, 2013. "Challenging The Spirit Level: Is There Really a Relationship between Inequality and Obesity?," Economic Affairs, Wiley Blackwell, vol. 33(2), pages 232-245, June.
    17. Marek Kośny & Maria Piotrowska, 2019. "Assessment of Economic Security of Households Based on a Scenario Analysis," Economies, MDPI, vol. 7(3), pages 1-20, August.
    18. Olga Cantó & Carmelo García-Pérez & Marina Romaguera de la Cruz, 2021. "Multidimensional Measures of Economic Insecurity in Spain: The Role of Aggregation and Weighting Methods," Hacienda Pública Española / Review of Public Economics, IEF, vol. 238(3), pages 29-60, September.
    19. Marina Romaguera de la Cruz, 2017. "Economic insecurity in Spain: A multidimensional analysis," Working Papers 448, ECINEQ, Society for the Study of Economic Inequality.
    20. Clark, Andrew E. & D’Ambrosio, Conchita & Rohde, Nicholas, 2021. "Prenatal economic shocks and birth outcomes in UK cohort data," Economics & Human Biology, Elsevier, vol. 41(C).

    More about this item

    Keywords

    Child health; Economic insecurity; Stress; BMI; Gender; China;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:67:y:2019:i:c:s0167629618309664. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505560 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.