THE RELATIONSHIP BETWEEN INCOME AND FOOD INTAKE IN CHINA

Abstract

This study investigated the effect of food intake, which is considered a form of health investment, on income in China, accounting also for socioeconomic factors. It used the 2011 wave of the China Health and Nutrition survey, including 42,870 observations in the analysis. Six dependent variables, each representing a different measure of income, were explored. The main explanatory variables included a 3-day total food consumption (grams), a 3-day average intake of energy (kilocalories), a 3-day average intake of carbohydrate (grams), a 3-day average intake of protein (grams) and a 3-day average intake of fat (grams). Personal, household, and area characteristics were also controlled for. Multivariate linear regression ordinary least squares models were used and the Box-Cox tests showed that the more appropriate functional form for the dependent variables were the log as opposed to the linear form. Results showed that food intake, taken as an investment for health, had a statistically significant impact on income. In particular, the 3-day average protein intake seemed to have the strongest effect; it was persistently positive and statistically significant across all measures of income. This was consistent with an extended version of the human capital theory, where good health improves income. A positive and statistically significant relationship was also found between income and the following variables: education and professional types of occupation.