China’s agricultural decollectivization, carried out between 1979 and 1984, replaced commune-based farming with household production and substantially raised productivity. It also dismantled the collective institutions that financed and organised rural public services. This paper examines the consequences of this institutional transformation for rural health.
Using a newly digitized county-by-year dataset that links mortality, disease incidence, and local health provision, and staggered difference-in-differences, we find that county mortality rates increased by roughly 1.6 percent following the reform, implying approximately 90,000 excess deaths annually nationwide. The mortality increase is concentrated in counties with the largest declines in village-doctor availability (the so-called “barefoot doctors”) and is accompanied by a higher probability of local infectious-disease surges after the reform.
These patterns are not explained by changes in government health expenditures, and accounting for differential pre-reform income trajectories modestly increases the estimated effect. Thus, rural market-oriented reforms carried substantial and long-lasting health costs by weakening local primary care capacity.