Health Risk, Income Effect, and the Stability of Farmers’ Poverty Alleviation in Deep Poverty Areas: A Case Study of S-County in Qinba Mountain Area

Abstract

Health status and income level are both important factors in reducing poverty and accomplishing sustainable development in deep poverty areas of China. Therefore, the purpose of this study is to provide policy support for the sustainable poverty alleviation of farmers by analyzing the net effect of health risk on Farmers’ income poverty and its impact mechanism. Based on the data of more than 199,000 farmers, this study uses the Difference in Difference (DID) model to empirically analyze the effect of health-risk on farmers’ income poverty. The empirical findings obtained from DID model show that health risk has a significant and positive impact on income poverty, where the impact of disability is higher. Furthermore, the mechanism shows that the impact of health risks on income poverty is mainly influenced by farmers’ off-farm working choices and time. The heterogeneity analysis shows that the health risk significantly impacts non-vulnerable farmers’ poverty. With outdated healthcare facilities in poverty-stricken areas, people are more likely to fall into income poverty. Therefore, the study concludes that establishing an effective long-term mechanism of health risk prevention is essential to improving the endogenous development power of poor farmers and decreasing income poverty.