Industrialization and Inequality: The Use of Health Care in Rural China.

Summary While much work has been done on the effect of health insurance on the demand for health care, the effect of urbanization, the industrialization process, and changes in the supply of health care have so far received little attention. The data used are from the China Health and Nutrition Survey (CHNS) covering the period 1991-2006. With the industrialization process, the number of rural inhabitants with agricultural activity is decreasing. Rural areas undergoing urbanization are developing transport systems as a priority. The supply of health care, under the impulse of the central and provincial governments, has changed. The quality of care offered has improved, public infrastructure has become more concentrated and better equipped, and private and community infrastructure has developed. At the same time, public funding of public facilities has been greatly reduced and facilities have used drugs and diagnostic procedures as a profit generator. As a result, rural residents working outside the country and with a substantial income have access to better quality care than before the economic reforms. In contrast, farmers with low incomes and little mobility were worse off.