The overall goal of the paper is to understand the progress of the design and implementation of China’s New Cooperative Medical System (NCMS) program between 2004 (the second year of the program) and 2007. In the paper we seek to assess some of the strengths and weaknesses of the program using a panel of national- representative, household survey data that were collected in 2005 and early 2008. According to our data, we confirm the recent reports by the Ministry of Health that there have been substantial improvements to the NCMS program in terms of coverage and participation. We also show that rural individuals also perceive an improvement in service by 2007. While the progress of the NCMS program is clear, there are still weaknesses. Most importantly, the program clearly does not meet one of its key goals of providing insurance against catastrophic illnesses. On average, individuals that required inpatient treatment in 2007 were reimbursed for 15% of their expenditures. Although this is higher than in 2004, on average, as the severity of the illness (in terms of expenditures on health care) rose, the real reimbursement rate (reimbursement amount/total expenditure on medical care) fell. The real reimbursement rate for illnesses that required expenditures between 4000 and 10000 yuan (over 10000 yuan) was only 11% (8%). Our analysis shows that one of the limiting factors is constrained funding.

Migration is one of the main ways of alleviating poverty in developing countries, including China. However, there are concerns about the potential negative effects of migration on the educational achievement of the children that are left behind in villages when one or both of their parents out-migrate to cities. This paper examines changes in school performance before and after the parents of students out-migrate. Surprisingly, we find that there is no significant negative effect of migration on school performance. In fact, we find that educational performance improves in migrant households in which the father out-migrates.

Previous studies have found that the returns to education in rural China are far lower than estimates for other developing economies. In this paper, we seek to determine why previous estimates are so low and provide estimates of what we believe are more accurate measures of the returns. Whereas estimates for the early 1990s average 2.3 percent, we find an average return of 6.4 percent. Furthermore, we find even higher returns among younger people, migrants, and for post-primary education. The paper demonstrates that, although part of the difference between our estimate and previous estimates can be attributed to increasing returns during the 1990s, a larger part of the difference is due to the nature of the data and the methodological approaches used by other authors.

Testing the tradeoff between child quantity and quality within a family is complicated by the endogeneity of family size. Using data from the Chinese Population Census, this paper examines the effect of family size on child educational attainment in China. We find a negative correlation between family size and child educational attainment, even after we control for the birth order effect. We then instrument family size by the exogenous variation that is induced by a twin birth, and find a causal link between family size and children’s education. We also find that the effect of family size is more evident in rural China, where the public education system is poor. These findings suggest a quantity-quality tradeoff of children in developing countries.

Migration is widely known as one of the main ways of alleviating poverty in developing countries, including China. However, migration itself is not costless. In recent years, there is an emerging concern about the effect of migration on the educational achievement of the children of migrants in China since most of the young children of school age of the migrants are being left in the village when one or both of their parents move to the city to work. This paper examines the effect of the migration activities of the father and/or mother on the educational performance of elementary school students (First to Fifth grade). With a dataset that collected from a survey designed specifically to examine changes in school performance of children before and after their parents left the village to migrate to the city we use Difference-in-Difference and, propensity score matching approaches. Although the grades of the children from some migrants family are sometimes lower than those from non-migrants family (in the time period before and after migration), somewhat surprisingly, we find that there is no significant negative effect of migration itself on the children’s school performance. In fact, in some cases (e.g., after the father migrates), performance improves. Our paper also demonstrates and explains the interaction effects of migration from wealth and household composition.

In this paper, we examine the effect of maternal education on the health of young children by using a large sample of adopted children from China. As adopted children are genetically unrelated to the nurturing parents, the educational effect on them is most likely to be the nurturing effect. We find that the mother's education is an important determinant of the health of adopted children even after we control for income, the number of siblings, health environments, and other socioeconomic variables. Moreover, the effect of the mother's education on the adoptee sample is similar to that on the own birth sample, which suggests that the main effect of the mother's education on child health is in post-natal nurturing. Our work provides new evidence to the general literature that examines the determinants of health and that examines the intergenerational immobility of socioeconomic status.