The diversity of income effects on mortality across regions in People’s Republic of China: Instrumental variable approach

The issue of equality of opportunity is crucial in contemporary society, often examined in relation to income. Previous research has demonstrated the uncertain effect of income on mortality due to the presence of other factors. To empirically assess the difference in the effect of income on mortality rates between more developed and less developed provinces in China, we modeled mortality rates based on the instrumental variables method and the generalized method of moments. The study results indicate that a 1% increase in income reduces mortality by over 2%. The results confirm the hypothesis that income has a stronger negative impact on mortality in more socially developed provin­ces of the People’s Republic of China compared to less socially developed areas. This difference is statistically significant at the 1% level and is at least 10%. The obtained results and their development can significantly impact the implementation of effective political governance measures aimed at reducing mortality in certain territories and mortality in general.