Rural centralized residences and the health of the acting heads of rural households: The case of China

The rural centralized residence (RCenR) has been adopting to promote rural development in 24 provinces in China. Acting heads of rural households are older and their health is worse than average rural residents. However, their health has greater externalities since they play a central role in families and in daily village operations. It is therefore important to investigate the causal effect of RCenR on the health of the acting heads, which remains econometrically underexplored. This study controls for cross-prefecture contiguous-villages group fixed effects and uses the expected once-off government housing subsidy as the instrumental variable to estimate the causal effect of RCenR on the health of acting heads. It is found that RCenR significantly improves acting heads' health through increased income, reduced strenuous agricultural activities, greater use of clean energy and clean water, as well as easier access to local medical services. These findings are important because they can guide developing countries to improve their rural development policies.