The Effect of Health-Related Behaviors on Income in China: A Panel Data Analysis

Abstract

Understanding the interaction between habits and income can be an efficient way to economically improve income and this paper serves to figure out the effectiveness of health-related income factors and gender differences in these factors using regressions, interaction effects and fixed effect model estimations. I used China Health and Nutrition Survey (CHNS) for 2000, 2004, 2006, 2009, 2011 and 2015 and expected the study to be representative of the general population in China. Results show clear effect of these factors, with that smoking can negatively associate with income and tea, coffee, alcohol, and exercising be in positive association. Also, gender differences are tested and interpreted. Extensions include discuss pathway through which these factors influence income, urban residence’s interaction effect with these factors and yearly differences. Main findings are concluded for future possible uses, as policy makers for women’s economical empowerment programs may refer to the statistics and find the area that return the most such as drinking tea and quitting smoking.