A number of economic studies have shown a strong positive correlation between
urban household registration status (hukou) and better health outcomes in
China. The question at the center is whether the correlation implies causation.
This paper uses change in hukou system in 1964 to test the causality between
hukou and health. The regression-discontinuity (RD) design estimates suggest
that urban hukou citizens have much better chances of being in good health. The
deleterious effect of rural hukou on health possibly work through mechanisms of
income disparity, variations in educational attainment, and availability of health
insurance.