The Impact of Household Debt on the Health of the Elderly in China: Evidence from China Family Panel Studies

With the aging of China’s population and the expansion of household debt, the health of the elderly has become an important social issue. Based on the 2018 China Family Panel Studies (CFPS) database, we explored the impact of household debt on the health of older adults and the mechanism of transmission. The Oprobit and IV-Oprobit models were employed for our analysis. Results: (1) Household debt had a significant negative impact on both the physical and mental health of older adults. (2) Female older adults were more sensitive to the impact of household debt. Additionally, a higher education level led to an increasing impact of debt on mental health, but physical health was only affected in the low-education group. (3) The impact of household debt had an inverted U-shape relationship with household income, indicating that, as household income increases, the impact on health level first rises and then reduces after peaking at a middling level of income. (4) According to the mechanism analysis, household debt affects the health of the elderly by causing them to return to work and reducing their medical expenditures. Considering the above conclusions, we put forward some policy implications to alleviate the health problems of the elderly