Agricultural payment mechanisms, medical cost anxiety, and income mobility in China

Teng Wu, Meihong Gao

Abstract

This study investigates the relationship between agricultural payment mechanisms, medical cost anxiety, and income mobility in China. The study made use of the World Bank (2021) Global Financial Inclusion data. Utilizing a range of figures to visually represent data trends and relationships, the study reports how agricultural payment mechanisms relate to income mobility while accounting for the impact of medical cost anxiety. The findings reveal that while agricultural payments positively affect income mobility, their effectiveness is significantly dampened by the presence of high medical expenses. Households that receive agricultural payments but face substantial healthcare costs tend to experience limited upward mobility compared to those with lower medical expenditures. The study concludes that to improve income mobility in rural China, policy interventions must address both agricultural productivity and healthcare affordability. A dual approach that integrates agricultural subsidies with healthcare reforms is recommended, focusing on expanding access to affordable healthcare, reducing out-of-pocket expenses, and strengthening social safety nets.

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